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| (STATE OF INCORPORATION) | (I.R.S. EMPLOYER IDENTIFICATION NO.) | ||||
| TITLE OF EACH CLASS | TRADING SYMBOL(S) | NAME OF EACH EXCHANGE ON WHICH REGISTERED | ||||||||||||
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☑
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Accelerated Filer
☐
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Non-accelerated Filer
☐
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Smaller reporting company |
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Emerging growth company |
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-9
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| Item 7. | |||||||||||
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| Item 7A. | |||||||||||
| Item 8. |
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| Item 9. | |||||||||||
| Item 9A. | |||||||||||
| Page(s) | |||||||||||
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| Item 10. | |||||||||||
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| Item 16. | |||||||||||
| TERM | DEFINITION | |||||||
| ABS Suite | Business acquired by the Company in October 2019 which includes a software platform used by issuers and trustees for administration of asset-backed and mortgage-backed securities programs | |||||||
| Acquire Media (AM) | An aggregator and distributor of curated real-time news, multimedia, data, and alerts; acquired by the Company on October 21, 2020 | |||||||
| Acquisition-Related Amortization | Amortization of definite-lived intangible assets acquired by the Company from all business combination transactions | |||||||
| Acquisition-Related Expenses | Consists of expenses incurred over a multi-year period to complete and integrate the acquisition of Bureau van Dijk | |||||||
| Adjusted Diluted EPS | Diluted EPS excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | |||||||
| Adjusted Net Income | Net Income excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | |||||||
| Adjusted Operating Income | Operating income excluding the impact of certain items as detailed in the section entitled "Non-GAAP Financial Measures" | |||||||
| Adjusted Operating Margin | Adjusted Operating Income divided by revenue | |||||||
| Americas | Represents countries within North and South America, excluding the U.S. | |||||||
| AML | Anti-money laundering | |||||||
| AOCI | Accumulated other comprehensive income (loss); a separate component of shareholders’ equity (deficit) | |||||||
| API | Application Programming Interface | |||||||
| ASC | The FASB Accounting Standards Codification; the sole source of authoritative GAAP as of July 1, 2009 except for rules and interpretive releases of the SEC, which are also sources of authoritative GAAP for SEC registrants | |||||||
| Asia-Pacific | Represents Australia and countries in Asia including but not limited to: China, India, Indonesia, Japan, Korea, Malaysia, Singapore, Sri Lanka and Thailand | |||||||
| ASR | Accelerated Share Repurchase | |||||||
| ASU | The FASB Accounting Standards Update to the ASC. It also provides background information for accounting guidance and the bases for conclusions on the changes in the ASC. ASUs are not considered authoritative until codified into the ASC | |||||||
| B&H | Barrie & Hibbert Limited, an acquisition completed in December 2011; part of the MA segment, a leading provider of risk management modeling tools for insurance companies worldwide | |||||||
| Board | The board of directors of the Company | |||||||
| BPS | Basis points | |||||||
| Brexit | The withdrawal of the United Kingdom from the European Union | |||||||
| Bureau van Dijk | Bureau van Dijk Electronic Publishing, B.V.; a global provider of business intelligence and company information; acquired by the Company on August 10, 2017 via the acquisition of Yellow Maple I B.V., an indirect parent of Bureau van Dijk; part of the RD&A LOB and a reporting unit within the MA reportable segment | |||||||
| Catylist |
A provider of commercial real estate (CRE) solutions for brokers; acquired by the Company on December 30, 2020
|
|||||||
| CCXI | China Cheng Xin International Credit Rating Co. Ltd.; China’s first and largest domestic credit rating agency approved by the People’s Bank of China; the Company acquired a 49% interest in 2006; currently Moody’s owns 30% of CCXI. | |||||||
| TERM | DEFINITION | |||||||
| CFG | Corporate finance group; an LOB of MIS | |||||||
| CLO | Collateralized loan obligation | |||||||
| CMBS | Commercial mortgage-backed securities; an asset class within SFG | |||||||
| COLI | Corporate-Owned Life Insurance | |||||||
| Commission | European Commission | |||||||
| Common Stock | The Company’s common stock | |||||||
| Company | Moody’s Corporation and its subsidiaries; MCO; Moody’s | |||||||
| Content | A reporting unit within the MA segment that offers subscription based research, data and analytical products, including credit ratings produced by MIS, credit research, quantitative credit scores and other analytical tools, economic research and forecasts | |||||||
| COVID-19 | An outbreak of a novel strain of coronavirus resulting in an international public health crisis and a global pandemic | |||||||
| CP | Commercial Paper | |||||||
| CP Notes | Unsecured commercial paper issued under the CP Program | |||||||
| CP Program | A program entered into on August 3, 2016 allowing the Company to privately place CP up to a maximum of $1 billion for which the maturity may not exceed 397 days from the date of issue and which is backstopped by the 2018 Facility. | |||||||
| CRAs | Credit rating agencies | |||||||
| DBPPs | Defined benefit pension plans | |||||||
| Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | |||||||
| EBITDA | Earnings before interest, taxes, depreciation and amortization | |||||||
| EMEA | Represents countries within Europe, the Middle East and Africa | |||||||
| EPS | Earnings per share | |||||||
| ERS | Enterprise Risk Solutions; an LOB within MA, which offers risk management software solutions as well as related risk management advisory engagements services | |||||||
| ESA | Economics and Structured Analytics; part of the RD&A line of business within MA | |||||||
| ESG | Environmental, Social and Governance | |||||||
| ESMA | European Securities and Markets Authority | |||||||
| ESPP | Employee stock purchase plan | |||||||
| ETR | Effective tax rate | |||||||
| EU | European Union | |||||||
| EUR | Euros | |||||||
| EURIBOR | The Euro Interbank Offered Rate | |||||||
| Eurozone | Monetary union of the EU member states which have adopted the euro as their common currency | |||||||
| Excess Tax Benefits | The difference between the tax benefit realized at exercise of an option or delivery of a restricted share and the tax benefit recorded at the time the option or restricted share is expensed under GAAP | |||||||
| Exchange Act | The Securities Exchange Act of 1934, as amended | |||||||
| External Revenue | Revenue excluding any intersegment amounts | |||||||
| FASB | Financial Accounting Standards Board | |||||||
| Fermat | Fermat International; an acquisition completed in October 2008; part of the MA segment; a provider of risk and performance management software to the global banking industry | |||||||
| TERM | DEFINITION | |||||||
| FIG | Financial institutions group; an LOB of MIS | |||||||
| Four Twenty Seven | A provider of data, intelligence, and analysis related to physical climate risks; acquired by the Company in July 2019 | |||||||
| Free Cash Flow | Net cash provided by operating activities less cash paid for capital additions | |||||||
| FTSE | Financial Times Stock Exchange | |||||||
| FX | Foreign exchange | |||||||
| GAAP | U.S. Generally Accepted Accounting Principles | |||||||
| GBP | British pounds | |||||||
| GDP | Gross domestic product | |||||||
| GDPR | European Union’s General Data Protection Regulation | |||||||
| ICRA | ICRA Limited; a provider of credit ratings and research in India. | |||||||
| INR | Indian Rupee | |||||||
| IRS | Internal Revenue Service | |||||||
| IT | Information technology | |||||||
| KIS | Korea Investors Service, Inc.; a Korean rating agency and consolidated subsidiary of the Company | |||||||
| KIS Pricing | Korea Investors Service Pricing, Inc.; a Korean provider of fixed income securities pricing and consolidated subsidiary of the Company | |||||||
| KIS Research | Korea Investors Service Research; a Korean provider of financial research and consolidated subsidiary of the Company | |||||||
| Korea | Republic of South Korea | |||||||
| KYC | Know-your-customer | |||||||
| LIBOR | London Interbank Offered Rate | |||||||
| LOB | Line of business | |||||||
| MA |
Moody’s Analytics—a reportable segment of MCO; a global provider of data and analytic solutions which help companies make better and faster decisions; consists of two LOBs—RD&A and ERS
|
|||||||
| Make Whole Amount | The prepayment penalty amount relating to certain Senior Notes, which is a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal | |||||||
| MAKS | Moody’s Analytics Knowledge Services; formerly known as Copal Amba; provides offshore research and analytic services to the global financial and corporate sectors; formerly part of the PS LOB within the MA reportable segment; this business was divested in November 2019 | |||||||
| MALS | Moody’s Analytics Learning Solutions; a reporting unit within the MA segment that includes on-line and classroom-based training services as well as credentialing and certification services | |||||||
| MCO | Moody’s; Moody’s Corporation and its subsidiaries; the Company | |||||||
| MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
| MESG | Moody's ESG Solutions Group | |||||||
| MIS | Moody’s Investors Service—a reportable segment of MCO; consists of five LOBs—SFG, CFG, FIG, PPIF and MIS Other | |||||||
| MIS Other | Consists of non-ratings revenue from ICRA, KIS Pricing and KIS Research revenue as well as revenue from providing ESG research, data and assessments. These businesses are components of MIS; MIS Other is an LOB of MIS | |||||||
| Moody’s | Moody’s Corporation and its subsidiaries; MCO; the Company | |||||||
| TERM | DEFINITION | |||||||
| MSS |
Moody's Shared Services; primarily consists of information technology and support staff such as finance, human resources and legal that support both MIS and MA.
|
|||||||
| NAV | Net asset value | |||||||
| Net Income | Net income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder | |||||||
| New Credit Losses Accounting Standard |
Updates to the ASC pursuant to ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This new accounting guidance requires the use of an “expected credit loss” impairment model for most financial assets reported at amortized cost, which will require entities to estimate expected credit losses over the lifetime of the instrument.
|
|||||||
| New Lease Accounting Standard | Updates to the ASC pursuant to ASU No. 2016-02, “Leases (ASC Topic 842)”. This new accounting guidance requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows depend on classification as either a finance or operating lease | |||||||
| N/A | Not applicable | |||||||
| NM | Percentage change is not meaningful | |||||||
| Non-GAAP | A financial measure not in accordance with GAAP; these measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s performance, facilitate comparisons to competitors’ operating results and to provide greater transparency to investors of supplemental information used by management in its financial and operational decision making | |||||||
| NRSRO | Nationally Recognized Statistical Rating Organization, which is a credit rating agency registered with the SEC. | |||||||
| OCI | Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments | |||||||
| Omega Performance | A provider of online credit training; acquired by the Company in August 2018 | |||||||
| Operating segment | Term defined in the ASC relating to segment reporting; the ASC defines an operating segment as a component of a business entity that has each of the three following characteristics: i) the component engages in business activities from which it may recognize revenue and incur expenses; ii) the operating results of the component are regularly reviewed by the entity’s chief operating decision maker; and iii) discrete financial information about the component is available. | |||||||
| Other Retirement Plans | The U.S. retirement healthcare and U.S. retirement life insurance plans | |||||||
| PCS | Post-Contract Customer Support | |||||||
| PPIF | Public, project and infrastructure finance; an LOB of MIS | |||||||
| Profit Participation Plan | Defined contribution profit participation plan that covers substantially all U.S. employees of the Company | |||||||
| PS |
Professional Services, a former LOB within MA which consisted of MAKS and MALS that provided offshore analytical and research services as well as learning solutions and certification programs. Subsequent to the divestiture of MAKS in 2019, revenue from the MALS reporting unit, which previous to 2020 was reported in the PS LOB, is now reported as part of the RD&A LOB. Prior periods have not been reclassified as the amounts were not material.
|
|||||||
| RD&A | Research, Data and Analytics; an LOB within MA that offers: subscription based research, data and analytical products, including credit ratings produced by MIS; credit research; quantitative credit scores and other analytical tools; economic research and forecasts; business intelligence and company information products; commercial real estate data and analytical tools; and on-line and classroom-based training services as well as credentialing and certification services | |||||||
| Redeemable Non-controlling Interest | Represents minority shareholders' interest in entities which are controlled but not wholly-owned by Moody's and for which Moody's obligation to redeem the minority shareholders' interest is represented by a put/call relationship | |||||||
| TERM | DEFINITION | |||||||
| Reform Act | Credit Rating Agency Reform Act of 2006 | |||||||
| Regulatory Data Corporation (RDC) | A provider of anti-money laundering (AML) and know-your-customer (KYC) data and due diligence services; the Company acquired RDC in February 2020 | |||||||
| REIT | Real Estate Investment Trust | |||||||
| Reis, Inc. (Reis) | A provider of U.S. commercial real estate (CRE) data; acquired by the Company in October 2018; part of the RD&A LOB and a reporting unit within the MA reportable segment. | |||||||
| Relationship Revenue | For MIS, represents recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. For MIS Other represents subscription-based revenue. For MA, represents subscription-based revenue and software maintenance revenue | |||||||
| Reporting unit | The level at which Moody’s evaluates its goodwill for impairment under U.S. GAAP; defined as an operating segment or one level below an operating segment | |||||||
| Retirement Plans | Moody’s funded and unfunded pension plans, the healthcare plans and life insurance plans | |||||||
| Revenue Accounting Standard |
Updates to the ASC pursuant to ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)”. This new accounting guidance significantly changes the accounting framework under U.S. GAAP relating to revenue recognition and to the accounting for the deferral of incremental costs of obtaining or fulfilling a contract with a customer
|
|||||||
| RiskFirst | A company providing risk analytic solutions for the asset management and pension fund communities; acquired by the Company in July 2019 | |||||||
| RMBS | Residential mortgage-backed securities; an asset class within SFG | |||||||
| ROU Asset | Assets recorded pursuant to the New Lease Accounting Standard which represent the Company’s right to use an underlying asset for the term of a lease | |||||||
| SaaS | Software-as-a-Service | |||||||
| SEC | U.S. Securities and Exchange Commission | |||||||
| Securities Act | Securities Act of 1933, as amended | |||||||
| SFG | Structured finance group; an LOB of MIS | |||||||
| SG&A | Selling, general and administrative expenses | |||||||
| SSP | Standalone selling price | |||||||
| T&M | Time-and-Material | |||||||
| Tax Act | The “Tax Cuts and Jobs Act” enacted into U.S. law on December 22, 2017, which significantly amends the tax code in the U.S. | |||||||
| Total Debt | All indebtedness of the Company as reflected on the consolidated balance sheets | |||||||
| Transaction Revenue | For MIS, represents the initial rating of a new debt issuance as well as other one-time fees. For MIS Other, represents revenue from professional services as well as data services, research and analytical engagements. For MA, represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and research and analytical engagements | |||||||
| U.K. | United Kingdom | |||||||
| U.S. | United States | |||||||
| USD | U.S. dollar | |||||||
| UTPs | Uncertain tax positions | |||||||
|
Vigeo Eiris (VE)
|
A provider of Environmental, Social and Governance (ESG) research, data and assessments; acquired by the Company in April 2019
|
|||||||
| WACC | Weighted Average Cost of Capital | |||||||
| TERM | DEFINITION | |||||||
|
ZM Financial Systems (ZMFS)
|
A provider of risk and financial management software for the U.S. banking sector; acquired by the Company in December 2020
|
|||||||
| 2018 Restructuring Program |
Restructuring program approved by the chief executive officer of Moody’s on October 26, 2018. This program included relocation of certain functions from high-cost to lower-cost jurisdictions, a reduction of staff, including from acquisitions and pursuant to a review of the business criticality of certain positions, and the rationalization and exit of certain real estate leases due to consolidation of various business activities.
|
|||||||
|
2020 MA Strategic Reorganization Restructuring Program
|
Restructuring program approved by the chief executive officer of Moody’s on December 22, 2020, relating to a strategic reorganization in the MA reportable segment. | |||||||
|
2020 Real Estate Rationalization Restructuring Program
|
Restructuring program approved by the chief executive officer of Moody’s on July 29, 2020, primarily in response to the COVID-19 pandemic which revolves around the rationalization and exit of certain real estate leases. | |||||||
| 2012 Senior Notes | Principal amount of $500 million, 4.50% senior unsecured notes due in September 2022 | |||||||
| 2013 Senior Notes | Principal amount of $500 million, 4.875% senior unsecured notes due in February 2024 | |||||||
| 2014 Senior Notes | Principal amount of $600 million, 5.25% senior unsecured notes due in July 2044 | |||||||
| 2015 Senior Notes | Principal amount of €500 million, 1.75% senior unsecured notes due in March 2027 | |||||||
| 2017 Senior Notes Due 2023 | Principal amount of $500 million, 2.625% senior unsecured notes due January 15, 2023 | |||||||
| 2017 Senior Notes Due 2028 | Principal amount of $500 million, 3.25% senior unsecured notes due January 15, 2028 | |||||||
| 2017 Senior Notes Due 2021 |
Principal amount of $500 million, 2.75% senior unsecured notes originally due in December 2021, but early repaid by the Company in 2020.
|
|||||||
| 2018 Facility | Five-year unsecured revolving credit facility, with capacity to borrow up to $1 billion; backstops CP issued under the CP Program | |||||||
| 2018 Senior Notes |
Principal amount of $300 million, 3.25% senior unsecured notes originally due in June 2021, but early repaid by the Company in 2020.
|
|||||||
| 2018 Senior Notes Due 2029 | Principal amount of $400 million, 4.25% senior unsecured notes due February 1, 2029 | |||||||
| 2018 Senior Notes Due 2048 | Principal amount of $400 million, 4.875% senior unsecured notes due December 17, 2048 | |||||||
| 2019 Senior Notes | Principal amount of €750 million, 0.950% senior unsecured notes due in February 25, 2030 | |||||||
| 2020 Senior Notes Due 2025 | Principal amount of $700 million, 3.75% senior unsecured notes due March 24, 2025 | |||||||
| 2020 Senior Notes Due 2050 | Principal amount of $300 million, 3.25% senior unsecured notes due May 20, 2050 | |||||||
| 2020 Senior Notes Due 2060 | Principal amount of $500 million, 2.55% senior unsecured notes due August 18, 2060 | |||||||
| 7WTC | The Company’s corporate headquarters located at 7 World Trade Center in New York, NY | |||||||
|
|
|
|||||||||||||||
|
Independent provider of credit rating opinions and related information for over 100 years
|
|
A global integrated risk assessment firm that empowers organizations to make better decisions |
|
Global provider of data and analytic solutions which help companies make better and faster decisions.
|
||||||||||||
| 59.7% | 2020 Adjusted Operating Margin |
Total 2020 Revenue
of $5.4 billion |
29.4% | 2020 Adjusted Operating Margin | |||||||||||||
| 57.1% | 2020 Operating Margin |
|
20.3% | 2020 Operating Margin | |||||||||||||
| 44.5% | 2020 Operating Margin | ||||||||||||||||
| 49.7% | 2020 Adjusted Operating Margin | ||||||||||||||||
|
||||||||||||||
|
2007 - 2016 | |||||||||||||
| Expanded beyond ratings agency | ||||||||||||||
|
•
Established
Moody’s Analytics
•
Built the
ERS
business (e.g., Fermat, B&H)
•
Expanded
ratings to China
(i.e., CCXI)
|
||||||||||||||
|
2017 - 2020 | |||||||||||||
| Built out substantial data and analytics capabilities | ||||||||||||||
|
•
Complemented ERS business with
private company information
(i.e., BvD)
•
Accelerated
capability expansion
(e.g., company database, CRE data, ESG data)
|
||||||||||||||
|
2021 and Beyond | |||||||||||||
| Positioned to serve a wide range of risk assessment markets | ||||||||||||||
|
•
Competitive differentiator
:
integration of data and analytics combined with expertise and technology enablement
•
Further investment in data and analytics capabilities such as
private company, CRE and ESG
to serve high growth risk assessment use cases (e.g., KYC and compliance)
|
||||||||||||||
| The Benefits of a Moody's Rating | ||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
| Access to capital | Transparency, credit comparison and market stability | Planning and budgeting | Analytical capabilities | |||||||||||||||||
|
•
Moody’s opinions on credit are used by institutional investors throughout the world, making an issuer’s debt potentially more attractive to a wide range of buyers.
|
•
Signals a willingness by issuers to be transparent and provides issuers with an independent assessment against which to compare creditworthiness.
|
•
May help issuers when formulating internal capital plans and funding strategies
|
•
Among ratings advisors, Moody’s has a strong position and is well-recognized for the depth and breadth of its analytical capabilities.
|
|||||||||||||||||
|
•
A Moody’s rating may facilitate access to both domestic and international debt capital.
|
•
Moody’s ratings and research reports may help to maintain investor confidence, especially during periods of market stress.
|
|||||||||||||||||||
| MIS by the Numbers | ||||||||||||||||||||
|
5,000+ |
|
16,000+ | |||||||||||||||||
| Rated Non-Financial Corporates | Rated Public Finance Issuers | |||||||||||||||||||
|
3,600+ |
|
9,100+ | |||||||||||||||||
| Rated Financial Institutions | Rated Structured Finance Deals | |||||||||||||||||||
|
145 |
|
1,000+ | |||||||||||||||||
| Rated Sovereigns | Rated Infrastructure & Public Finance Issuers | |||||||||||||||||||
|
47 |
|
202 | |||||||||||||||||
| Rated Supranational Institutions | Rating Methodologies | |||||||||||||||||||
|
459 |
|
140+ | |||||||||||||||||
|
Rated Sub-Sovereigns
|
Countries where MIS provides ratings | |||||||||||||||||||
|
MA's Diverse Product Solutions
|
||||||||||||||
| Continuous expansion and refinement of content, tools and user experience to help customers make better and faster decisions. | ||||||||||||||
|
Integrated Experience:
Ease of Use
|
Enhanced Content and Coverage:
More Value
|
|||||||||||||
|
Onboard customers
Confirm KYC, AML
|
|
|
Compliance modules
Leverage BvD, RDC and Acquire Media data
|
||||||||||
|
Gather financials
Create credit statistics
|
|
|
Spreading tools
Prepopulate and digitize financials
|
||||||||||
|
Analyze credit and transaction
Assess creditworthiness of portfolio
|
|
|
World class credit research and analytics
Early warning signals and credit scoring
|
||||||||||
|
Consider risks holistically
Climate change, cyber, macro-economic
|
|
|
ESG impact
of customer’s business
|
||||||||||
| Multichannel Delivery | ||||||||||||||
|
Web |
|
Third party platforms | |||||||||||
|
Excel add-in |
|
Mobile | |||||||||||
|
API | |||||||||||||
| MA Customers by the Numbers | ||||||||||||||||||||
|
1,500+ |
|
2,900+ | |||||||||||||||||
| Asset Managers | Commercial Banks | |||||||||||||||||||
|
3,100+ |
|
225+ | |||||||||||||||||
| Corporations | Securities Dealers and Investment Banks | |||||||||||||||||||
|
675+ |
|
4,000+ | |||||||||||||||||
| Insurance Companies | Government & Other Entities | |||||||||||||||||||
|
300+ |
|
337,000+ | |||||||||||||||||
| Real Estate Entities | Individuals accessed the Moody's research website | |||||||||||||||||||
|
155+ |
|
31,000+ | |||||||||||||||||
| Countries where MA customers operate | Customer users accessed the Moody's research website in 2020 | |||||||||||||||||||
| Global Headcount | |||||||||||||||||||||||
| December 31, | Change | ||||||||||||||||||||||
| 2020 | 2019 | % | |||||||||||||||||||||
| MIS | |||||||||||||||||||||||
| U.S. | 1,512 | 1,453 | 4 | % | |||||||||||||||||||
| Non-U.S. | 3,564 | 3,358 | 6 | % | |||||||||||||||||||
| Total | 5,076 | 4,811 | 6 | % | |||||||||||||||||||
| MA | |||||||||||||||||||||||
| U.S. | 2,004 | 1,810 | 11 | % | |||||||||||||||||||
| Non-U.S. | 2,963 | 3,023 | (2) | % | |||||||||||||||||||
| Total | 4,967 | 4,833 | 3 | % | |||||||||||||||||||
| MSS | |||||||||||||||||||||||
| U.S. | 709 | 645 | 10 | % | |||||||||||||||||||
| Non-U.S. | 738 | 792 | (7) | % | |||||||||||||||||||
| Total | 1,447 | 1,437 | 1 | % | |||||||||||||||||||
| Total MCO | |||||||||||||||||||||||
| U.S. | 4,225 | 3,908 | 8 | % | |||||||||||||||||||
| Non-U.S. | 7,265 | 7,173 | 1 | % | |||||||||||||||||||
| Total | 11,490 | 11,081 | 4 | % | |||||||||||||||||||
|
Moody’s Priorities for Strategic Growth
|
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
| Global Integrated Risk Assessments | Moody's Core Strengths | Strategic Adjacencies and Expand into New Geographies | ||||||||||||||||||||||||
| Standard Solutions and Insights | Business Adjacencies | |||||||||||||||||||||||||
|
Credit |
|
|
|
|
|
||||||||||||||||||||
|
Data | Trusted Brand | Proprietary data and integrated analytics | Commercial Real Estate | Know Your Customer | ESG | ||||||||||||||||||||
| Regional Expansion | ||||||||||||||||||||||||||
|
Analytics |
|
|
|
|
|
||||||||||||||||||||
| Business-credit products | Expanded global customer base | EMEA | Asia Pacific | Latin America | ||||||||||||||||||||||
|
|
|
|
|
||||||||||
|
Enhancements to ratings quality and product extensions
|
Investments that extend ownership and participation in joint ventures and strategic alliances
|
Expansion in emerging markets |
New products, services, content and technology capabilities to meet customer demands
|
Selective bolt-on acquisitions that accelerate the ability to scale and grow Moody’s businesses
|
||||||||||
| Date | Business | Company | Stake | Strategic Commentary | ||||||||||
| December 2020 | Commercial Real Estate | Catylist, Inc | 100% | A U.S. based provider of commercial real estate (CRE) solutions for brokers. The acquisition advances Moody’s Analytics CRE platform, substantially enhancing its coverage of property-level data and expanding its range of analytical solutions to the broker market. | ||||||||||
| December 2020 | Risk Solutions | ZM Financial Systems | 100% | A U.S. based provider of risk and financial management software for the U.S. banking sector. The acquisition advances Moody’s position in integrated risk assessment by broadening Moody’s Analytics’ suite of enterprise risk solutions, which help financial institutions make better decisions. | ||||||||||
| November 2020 | ESG & KYC | MioTech | Minority | Provider of ESG and KYC alternative data and insights serving the Greater China market. The investment reflects Moody’s commitment to providing China’s evolving financial markets with innovative and technology enabled ESG and KYC solutions. | ||||||||||
| October 2020 | Data | Acquire Media | 100% | A U.S. based aggregator and distributor of curated real-time news, multimedia, data, and alerts. The acquisition serves to advance MA’s solutions by strengthening its ability to provide early warning signals and real-time insight to market participants. | ||||||||||
| August 2020 | Credit Ratings | Malaysian Rating Corporation Berhad (MARC) | Minority | Credit rating agency serving the Malaysian domestic bond and sukuk markets. The investment strengthens Moody’s presence in Southeast Asia and across domestic bond markets globally, and advances its position as a leader in Islamic finance. | ||||||||||
| March 2020 | Financial Training & Certifications | RBA International | 100% | A U.K. based provider of online retail bank training and certifications. The acquisition deepens the capabilities of MA’s financial training and certifications business. | ||||||||||
| February 2020 | KYC | Regulatory DataCorp | 100% | A U.S. based provider of KYC data and due diligence services. The acquisition complements Moody’s 2017 acquisition of company data provider Bureau van Dijk (BvD), creating a global leader in compliance solutions, BvD’s fastest-growing business segment. | ||||||||||
|
Moody's Priorities Looking Forward
|
|||||||||||||||||||||||
| Realizing the full potential of our global integrated risk assessment opportunity | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||
| Sharpen focus on understanding and delivering for our customers | Invest with intent to grow and scale | Collaborate, modernize and innovate | |||||||||||||||||||||
| World-class customer experience | Deepen and extend our presence in risk assessment markets | Technology interoperability and data access | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Health of the world’s major economies
|
Debt capital markets activity | Disintermediation of credit markets | Fiscal and monetary policy of governments | Expansion of market for integrated data and analytics solutions | Business investment spending, including mergers and acquisitions | |||||||||||||||||||||||||||
| Priorities for Strategic Growth: ESG Integrated Across All Platforms, Driving Growth and Enhanced Relevance | |||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| MIS Integration | MA Integration | MESG | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| ESG Classification | ESG Credit Scores | Real Estate Solutions |
|
Moodys.com | ESG Measures |
|
Climate Solutions | ||||||||||||||||||||||||||||
|
|
|
Risk Analytics & Regulatory Reporting |
|
|
Index Solutions |
|
||||||||||||||||||||||||||||
| Credit Ratings & Research | Heat Maps | Lending Solutions and Tools | APIs, and Data Feeds | SME Solutions | Sustainable Finance | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Interest rates
|
Business investment spending | Corporate refinancing needs | Merger and acquisition activity | Issuer financial health | Consumer borrowing levels | Securitization activity |
Expansion of ratings coverage
|
Expansion into geographies with developing debt capital markets
|
||||||||||||||||||
|
|
|
|
|
||||||||||
|
Growth from data and analytics in adjacent markets, including ESG, KYC, and CRE
|
Expansion of data sets and delivery options establishing a gateway that supports multiple stakeholders | Ability to capitalize on demand for company data from a diverse set of use cases | Continued digital transformation of credit decisioning and analytical tools (e.g., shift to SaaS-based solutions) | Geographic expansion of actuarial and asset management solutions and continued investment in predictive analytics franchise | ||||||||||
|
Proprietary information |
|
Publications |
|
Databases | ||||||||||||||||||||||||
|
Trademarks |
|
Software tools and applications |
|
Domain names | ||||||||||||||||||||||||
|
Research |
|
Models and methodologies |
|
Other proprietary materials that, in the aggregate, are of material importance to Moody’s business | ||||||||||||||||||||||||
| Name, Age, Position and Biographical Data | ||||||||
|
Robert Fauber, 50
President and Chief Executive Officer
Mr. Fauber has served as the Company’s President and Chief Executive Officer since January 2021. Mr. Fauber joined the Board of Directors in October 2020 and he currently serves on the Executive Committee of the Board of Directors. Prior to serving as CEO, Mr. Fauber served as Chief Operating Officer from November 2019 to December 2020, as President of Moody’s Investors Service, Inc. from June 2016 to October 2019, as Senior Vice President—Corporate & Commercial Development of Moody’s Corporation from April 2014 to May 2016, and was Head of the MIS Commercial Group from January 2013 to May 2016. From April 2009 through April 2014, he served as Senior Vice President—Corporate Development of Moody’s Corporation. Mr. Fauber served as Vice President—Corporate Development from September 2005 to April 2009. Prior to joining Moody’s, Mr. Fauber served in several roles at Citigroup and its investment banking subsidiary Salomon Smith Barney from 1999 to 2005. From 1992 to 1996, Mr. Fauber worked at NationsBank (now Bank of America) in the middle market commercial banking group.
|
|||||||
|
John J. Goggins, 60
Executive Vice President and General Counsel
Mr. Goggins has served as the Company’s Executive Vice President and General Counsel since April 2011 and the Company’s Senior Vice President and General Counsel from October 2000 until April 2011. Mr. Goggins joined Moody’s Investors Service, Inc. in February 1999 as Vice President and Associate General Counsel.
|
|||||||
|
Melanie Hughes, 58
Senior Vice President and Chief Human Resources Officer
Ms. Hughes has served as the Company’s Senior Vice President—Chief Human Resources Officer since September 2017. Prior to joining the Company, Ms. Hughes was Chief Human Resource Officer and Executive Vice President, Human Resources at American Eagle Outfitters from July 2016 to September 2017 and served as Executive Vice President, Human Resources at Tribune Media from May 2013 to June 2016. She has held several senior management roles for many different companies such as Coach, Gilt Group, DoubleClick and UBS Warburg.
|
|||||||
|
Mark Kaye, 41
Senior Vice President and Chief Financial Officer
Mr. Kaye has served as the Company’s Senior Vice President—Chief Financial Officer since August 2018. Prior to joining the Company, Mr. Kaye was Senior Vice President and Head of Financial Planning and Analysis at Massachusetts Mutual Life Insurance Company (MassMutual) since February 2016, and Chief Financial Officer of MassMutual U.S. since July 2015. Prior to that, Mr. Kaye served as Chief Financial Officer and Senior Vice President, Retirement Solutions, at Voya Financial from 2011 to 2015. Mr. Kaye previously held various senior financial and risk reporting positions at ING U.S. and ING Group, and was in the investment banking division of Credit Suisse First Boston.
|
|||||||
| Name, Age, Position and Biographical Data | ||||||||
|
Caroline Sullivan, 52
Senior Vice President and Corporate Controller
Ms. Sullivan has served as the Company’s Senior Vice President—Corporate Controller since December 2018. Prior to joining the Company, Ms. Sullivan served in several roles at Bank of America from 2011 to 2018, where her last position held was Managing Director and Global Banking Controller. Prior to that role, Ms. Sullivan supported the Global Wealth & Investment Management business from 2015 to 2017 in a variety of positions including Controller. Ms. Sullivan, a CPA, previously held various senior positions at several banks and a major accounting firm, and is a member of the Board of Directors of Financial Executives International.
|
|||||||
|
Stephen Tulenko, 53
President, Moody’s Analytics
Mr. Tulenko has served as President of Moody’s Analytics since November 2019. Mr. Tulenko served as Executive Director of Enterprise Risk Solutions from 2013 to October 2019 and as Executive Director of Global Sales, Customer Service and Marketing from 2008 to 2013. Prior to the formation of Moody’s Analytics, he held various sales, product development and product strategy roles at Moody’s Investors Service, Inc. Mr. Tulenko joined Moody’s in 1990.
|
|||||||
|
Michael West, 52
President, Moody’s Investors Service
Mr. West has served as President of Moody’s Investors Service, Inc. since November 2019. Mr. West served as Managing Director—Head of MIS Ratings and Research from June 2016 to October 2019. Previously, Mr. West served as Managing Director—Head of Global Structured Finance from February 2014 to May 2016 and Managing Director—Head of Global Corporate Finance from January 2010 to January 2014. Earlier in his career, he was also responsible for the research strategy for the ratings businesses and before that led Corporate Finance for the EMEA Region, European Corporates and the EMEA leveraged finance business. Prior to joining Moody’s in 1998, Mr. West worked at Bank of America and HSBC in various credit roles.
|
|||||||
| Period |
Total Number of Shares Purchased
(1)
|
Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program |
Approximate Dollar Value of Shares That May Yet Be Purchased Under The Program
(2)
|
||||||||||||||||||||||
| October 1- 31 | 2,306 | $ | — | — |
$1,081 million
|
|||||||||||||||||||||
| November 1- 30 | 396,164 | $ | 277.73 | 395,735 |
$971 million
|
|||||||||||||||||||||
| December 1- 31 | 511,332 | $ | 278.92 | 502,196 |
$831 million
|
|||||||||||||||||||||
| Total | 909,802 | $ | 278.40 | 897,931 | ||||||||||||||||||||||
| Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights |
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
(2)
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding Securities Reflected in Column (a)) | |||||||||||||||||||||||
| (a) | (b) | (c) | ||||||||||||||||||||||||
| Equity compensation plans approved by security holders | 3,167,939 |
(1)
|
$ | 133.95 | 17,620,777 |
(3)
|
||||||||||||||||||||
| Equity compensation plans not approved by security holders | — | $ | — | — | ||||||||||||||||||||||
| Total | 3,167,939 | $ | 133.95 | 17,620,777 | ||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||
| Moody’s Corporation | $ | 100.00 | $ | 95.41 | $ | 151.24 | $ | 145.03 | $ | 248.37 | $ | 306.18 | |||||||||||||||||||||||
| S&P 500 Composite Index | $ | 100.00 | $ | 111.96 | $ | 136.40 | $ | 130.42 | $ | 171.49 | $ | 203.04 | |||||||||||||||||||||||
| Russell 3000—Financial Services Index | $ | 100.00 | $ | 117.96 | $ | 141.49 | $ | 129.67 | $ | 172.37 | $ | 183.75 | |||||||||||||||||||||||
| Sensitivity Analysis | |||||||||||||||||||||||||||||
| Deficit Caused by a Hypothetical Reduction to Fair Value | |||||||||||||||||||||||||||||
| Goodwill | 10 | % | 20 | % | 30 | % | 40 | % | |||||||||||||||||||||
| MIS | $ | 99 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
| Content | 381 | — | — | — | — | ||||||||||||||||||||||||
| ERS | 800 | — | — | — | — | ||||||||||||||||||||||||
| MALS | 127 | — | — | (12) | (37) | ||||||||||||||||||||||||
| ICRA | 212 | — | (2) | (44) | (85) | ||||||||||||||||||||||||
| Bureau van Dijk | 2,746 | — | — | — | (266) | ||||||||||||||||||||||||
| Reis | 191 | — | (22) | (48) | (74) | ||||||||||||||||||||||||
| Totals | $ | 4,556 | $ | — | $ | (24) | $ | (104) | $ | (462) | |||||||||||||||||||
| (dollars in millions) |
Assumptions Used for 2021
|
Estimated Impact on 2021 Income before Provision for Income Taxes (Decrease)/Increase
|
|||||||||
|
Weighted Average Discount Rates
(1)
|
2.24%/2.30% | $ | (11) | ||||||||
| Weighted Average Assumed Compensation Growth Rate | 3.62 | % | $ | 2 | |||||||
| Assumed Long-Term Rate of Return on Pension Assets | 5.45 | % | $ | (5) | |||||||
|
–
Vigeo Eiris on April 12, 2019;
|
–
Regulatory DataCorp on February 13, 2020;
|
||||
|
–
Four Twenty Seven on July 22, 2019;
|
–
Acquire Media on October 21, 2020;
|
||||
|
–
RiskFirst on July 25, 2019;
|
|||||
|
–
ABS Suite on October 1, 2019;
|
|||||
| Year Ended December 31, | |||||||||||||||||
| Financial measure: | 2020 | 2019 | % Change Favorable / (Unfavorable) |
Insight and Key Drivers of Change Compared to Prior Year
|
|||||||||||||
| Moody's total revenue | $ | 5,371 | $ | 4,829 | 11 | % |
— reflects strong growth in both segments
|
||||||||||
| MIS External Revenue | $ | 3,292 | $ | 2,875 | 15 | % |
— primary driver of growth reflects higher corporate debt issuance (both investment-grade and high-yield) as issuers bolstered liquidity positions in response to COVID-19 uncertainties and issued opportunistically for refinancing needs
|
||||||||||
| MA External Revenue | $ | 2,079 | $ | 1,954 | 6 | % |
— strong renewals and new sales of credit research and data feeds, as well as demand for KYC and compliance solutions;
— demand for insurance compliance products along with credit assessment and loan origination solutions in ERS; and
— inorganic growth from acquisitions.
|
||||||||||
| Total operating and SG&A expenses | $ | 2,704 | $ | 2,554 | (6 | %) |
— additional compensation expense resulting from hiring activity and merit increases coupled with higher incentive compensation aligned with financial and operating performance;
— higher costs to support strategic initiatives to enhance technology infrastructure to enable automation, innovation and efficiency as well as to support business growth;
partially offset by:
— lower travel costs and disciplined expense management in light of the COVID-19 crisis coupled with benefits from the 2018 Restructuring Program
|
||||||||||
| Restructuring | $ | 50 | $ | 60 | 17 | % |
— charges are pursuant to the Company's
restructuring programs, more fully discussed in Note 11 to the consolidated financial statements
|
||||||||||
| Operating Margin | 44.5 | % | 41.4 | % | 310BPS |
— margin expansion reflects strong revenue growth
partially offset by growth in operating expenses
|
|||||||||||
| Adjusted Operating Margin | 49.7 | % | 47.4 | % | 230BPS | ||||||||||||
| ETR | 20.3 | % | 21.0 | % | 70BPS |
— decrease primarily due to a deferred tax benefit in 2020 resulting from a non-U.S. corporate reorganization
|
|||||||||||
| Diluted EPS | $ | 9.39 | $ | 7.42 | 27 | % |
— increase reflects strong operating income/Adjusted
Operating Income growth as described above
|
||||||||||
| Adjusted Diluted EPS | $ | 10.15 | $ | 8.29 | 22 | % | |||||||||||
| Year Ended December 31, |
% Change Favorable
(Unfavorable) |
||||||||||||||||
| 2020 | 2019 | ||||||||||||||||
| Revenue: | |||||||||||||||||
| United States | $ | 2,955 | $ | 2,544 | 16 | % | |||||||||||
| Non-U.S.: | |||||||||||||||||
| EMEA | 1,545 | 1,446 | 7 | % | |||||||||||||
| Asia-Pacific | 571 | 551 | 4 | % | |||||||||||||
| Americas | 300 | 288 | 4 | % | |||||||||||||
|
Total Non-U.S.
|
2,416 | 2,285 | 6 | % | |||||||||||||
| Total | 5,371 | 4,829 | 11 | % | |||||||||||||
| Expenses: | |||||||||||||||||
| Operating | 1,475 | 1,387 | (6 | %) | |||||||||||||
| SG&A | 1,229 | 1,167 | (5 | %) | |||||||||||||
| Restructuring | 50 | 60 | 17 | % | |||||||||||||
| Depreciation and amortization | 220 | 200 | (10 | %) | |||||||||||||
| Acquisition-Related Expenses | — | 3 | 100 | % | |||||||||||||
| Loss pursuant to the divestiture of MAKS | 9 | 14 | 36 | % | |||||||||||||
| Total | 2,983 | 2,831 | (5 | %) | |||||||||||||
| Operating income | 2,388 | 1,998 | 20 | % | |||||||||||||
|
Adjusted Operating Income
(1)
|
2,667 | 2,291 | 16 | % | |||||||||||||
| Interest expense, net | (205) | (208) | 1 | % | |||||||||||||
| Other non-operating income, net | 46 | 20 | 130 | % | |||||||||||||
|
Non-operating (expense) income, net
|
(159) | (188) | 15 | % | |||||||||||||
| Net income attributable to Moody’s | $ | 1,778 | $ | 1,422 | 25 | % | |||||||||||
| Diluted weighted average shares outstanding | 189.3 | 191.6 | 1 | % | |||||||||||||
| Diluted EPS attributable to Moody’s common shareholders | $ | 9.39 | $ | 7.42 | 27 | % | |||||||||||
|
Adjusted Diluted EPS
(1)
|
$ | 10.15 | $ | 8.29 | 22 | % | |||||||||||
| Operating margin | 44.5 | % | 41.4 | % | |||||||||||||
|
Adjusted Operating Margin
(1)
|
49.7 | % | 47.4 | % | |||||||||||||
| Effective tax rate | 20.3 | % | 21.0 | % | |||||||||||||
|
Global revenue
⇑
$542 million
|
U.S. Revenue
⇑
$411 million
|
Non-U.S. Revenue
⇑
$131 million
|
|||||||||||||||
|
Operating Expense
⇑
$88 million
|
SG&A Expense
⇑
$62 million
|
||||
-------------------------------------
-----------
|
Compensation expenses increased $69 million reflecting:
|
Compensation expenses increased $43 million reflecting:
|
||||||||||
|
— hiring activity and salary increases; and
|
— hiring activity and salary increases partially offset by benefits from the 2018 Restructuring Program; and
|
||||||||||
|
— higher incentive compensation accruals aligned with financial and operating performance.
|
— an increase in incentive compensation aligned with financial and operating performance.
|
||||||||||
|
Non-compensation expenses increased $19 million reflecting:
|
Non-compensation expenses increased $19 million reflecting:
|
||||||||||
|
— higher costs to support strategic initiatives to enhance technology infrastructure to enable automation, innovation and efficiency as well as to support business growth;
|
— higher costs to support the Company’s initiative to enhance technology infrastructure to enable automation, innovation and efficiency; and
|
||||||||||
| partially offset by: |
— higher estimates for credit losses of approximately $18 million primarily resulting from the anticipated impact of the COVID-19 crisis on the Company's customers;
|
||||||||||
|
— lower travel costs and disciplined expense management in light of the COVID-19 crisis.
|
|||||||||||
| partially offset by: | |||||||||||
|
— lower travel costs and disciplined expense management in light of the COVID-19 crisis; and
|
|||||||||||
|
— a $16 million captive insurance company settlement in 2019.
|
|||||||||||
| Other Expenses | ||
|
Operating margin 44.5%, up 310 BPS
|
Adjusted Operating Margin 49.7%, up 230 BPS
|
||||
| Operating margin and Adjusted Operating Margin expansion reflects strong revenue growth partially offset by growth in expenses. | ||||||||||||||
|
Interest Expense, net
⇓
$3 million
|
Other non-operating income
⇑
$26 million
|
||||
| Primarily reflects: | The increase was primarily due to: | |||||||||||||
|
— a $17 million benefit from a fair value hedge settled in connection with the early redemption of the 2017 Senior Notes;
|
— FX gains of approximately $2 million in 2020 compared to $18 million in FX losses in the same period of the prior year.
|
|||||||||||||
|
— a $16 million higher benefit from fair value swaps (more fully discussed in Note 7 to the consolidated financial statements);
|
||||||||||||||
| partially offset by: | ||||||||||||||
|
— a combined $24 million prepayment penalty in 2020 on the early redemption of the 2018 Senior Notes and 2017 Senior Notes
|
||||||||||||||
|
ETR
⇓
70BPS
|
||
|
Diluted EPS
⇑
$1.97
|
Adjusted Diluted EPS
⇑
$1.86
|
||||
|
Diluted EPS in 2020 of $9.39 increased $1.97 compared to 2019, with both periods including the aforementioned restructuring charges. The growth in EPS is mainly due to the aforementioned growth in operating income.
|
Adjusted Diluted EPS of $10.15 in 2020 increased $1.86 compared to 2019 (refer to the section entitled “Non-GAAP Financial Measures” of this MD&A for items excluded in the derivation of Adjusted Diluted EPS). The growth in Adjusted Diluted EPS is primarily due to the aforementioned growth in Adjusted Operating Income.
|
|||||||
| Year Ended December 31, |
% Change Favorable
(Unfavorable) |
||||||||||||||||
| 2020 | 2019 | ||||||||||||||||
| Revenue: | |||||||||||||||||
| Corporate finance (CFG) | $ | 1,857 | $ | 1,497 | 24 | % | |||||||||||
| Structured finance (SFG) | 362 | 427 | (15 | %) | |||||||||||||
| Financial institutions (FIG) | 530 | 476 | 11 | % | |||||||||||||
| Public, project and infrastructure finance (PPIF) | 496 | 446 | 11 | % | |||||||||||||
| Total ratings revenue | 3,245 | 2,846 | 14 | % | |||||||||||||
| MIS Other | 47 | 29 | 62 | % | |||||||||||||
| Total external revenue | 3,292 | 2,875 | 15 | % | |||||||||||||
| Intersegment royalty | 148 | 134 | 10 | % | |||||||||||||
| Total | 3,440 | 3,009 | 14 | % | |||||||||||||
| Expenses: | |||||||||||||||||
| Operating and SG&A (external) | 1,380 | 1,265 | (9 | %) | |||||||||||||
| Operating and SG&A (intersegment) | 7 | 9 | 22 | % | |||||||||||||
| Restructuring | 19 | 31 | 39 | % | |||||||||||||
| Depreciation and amortization | 70 | 71 | 1 | % | |||||||||||||
| Total expense | 1,476 | 1,376 | (7 | %) | |||||||||||||
| Operating income | $ | 1,964 | $ | 1,633 | 20 | % | |||||||||||
| Restructuring | 19 | 31 | 39 | % | |||||||||||||
| Depreciation and amortization | 70 | 71 | 1 | % | |||||||||||||
| Captive insurance company settlement | — | 10 | 100 | % | |||||||||||||
| Adjusted Operating Income | $ | 2,053 | $ | 1,745 | 18 | % | |||||||||||
| Operating margin | 57.1 | % | 54.3 | % | |||||||||||||
| Adjusted Operating Margin | 59.7 | % | 58.0 | % | |||||||||||||
|
MIS: Global revenue
⇑
$417 million
|
U.S. Revenue
⇑
$347 million
|
Non-U.S. Revenue
⇑
$70 million
|
||||||
|
CFG: Global revenue
⇑
$360 million
|
U.S. Revenue
⇑
$323 million
|
Non-U.S. Revenue
⇑
$37 million
|
||||||
|
SFG: Global revenue
⇓
$65 million
|
U.S. Revenue
⇓
$56 million
|
Non-U.S. Revenue
⇓
$9 million
|
||||||
|
FIG: Global revenue
⇑
$54 million
|
U.S. Revenue
⇑
$50 million
|
Non-U.S. Revenue
⇑
$4 million
|
||||||
|
PPIF: Global revenue
⇑
$50 million
|
U.S. Revenue
⇑
$29 million
|
Non-U.S. Revenue
⇑
$21 million
|
||||||
|
MIS: Operating and SG&A Expense
⇑
$115 million
|
||
| Compensation costs | Non-compensation costs | |||||||
| The increase is primarily due to: | The increase is primarily due to: | |||||||
| — annual salary increases and hiring; |
— approximately $27 million in higher costs to support the
Company’s initiative to enhance technology infrastructure to enable automation, innovation and efficiency as well as to support business growth;
|
|||||||
|
— higher incentive compensation aligned with financial and operating performance;
|
||||||||
|
— inorganic expense growth from the aforementioned
acquisitions;
partially offset by
|
— higher estimates for bad debt reserves of $11 million
primarily resulting from the anticipated impact of the
COVID-19 crisis on the Company's customers;
partially
offset by:
|
|||||||
| — benefits from the 2018 Restructuring Program | ||||||||
|
— lower travel costs of $17 million and disciplined expense
management in light of the COVID-19 crisis; and
|
||||||||
|
— a $10 million charge in the prior year for a captive
insurance company settlement
|
||||||||
| Other Expenses | ||
|
MIS: Operating Margin 57.1%
⇑
280BPS
|
Adjusted Operating Margin 59.7%
⇑
170BPS
|
||||
| Year Ended December 31, |
% Change Favorable
(Unfavorable) |
||||||||||||||||
| 2020 | 2019 | ||||||||||||||||
| Revenue: | |||||||||||||||||
| Research, data and analytics (RD&A) | $ | 1,514 | $ | 1,273 | 19 | % | |||||||||||
| Enterprise risk solutions (ERS) | 565 | 522 | 8 | % | |||||||||||||
| Professional services (PS) | — | 159 | (100 | %) | |||||||||||||
| Total external revenue | 2,079 | 1,954 | 6 | % | |||||||||||||
| Intersegment revenue | 7 | 9 | (22 | %) | |||||||||||||
| Total MA Revenue | 2,086 | 1,963 | 6 | % | |||||||||||||
| Expenses: | |||||||||||||||||
| Operating and SG&A (external) | 1,324 | 1,289 | (3 | %) | |||||||||||||
| Operating and SG&A (intersegment) | 148 | 134 | (10 | %) | |||||||||||||
| Restructuring | 31 | 29 | (7 | %) | |||||||||||||
| Depreciation and amortization | 150 | 129 | (16 | %) | |||||||||||||
| Acquisition-Related Expenses | — | 3 | 100 | % | |||||||||||||
| Loss pursuant to the divestiture of MAKS | 9 | 14 | 36 | % | |||||||||||||
| Total expense | 1,662 | 1,598 | (4 | %) | |||||||||||||
| Operating income | $ | 424 | $ | 365 | 16 | % | |||||||||||
| Restructuring | 31 | 29 | (7 | %) | |||||||||||||
| Depreciation and amortization | 150 | 129 | (16 | %) | |||||||||||||
| Acquisition-Related Expenses | — | 3 | 100 | % | |||||||||||||
| Loss pursuant to the divestiture of MAKS | 9 | 14 | 36 | % | |||||||||||||
| Captive insurance company settlement | — | 6 | 100 | % | |||||||||||||
| Adjusted Operating Income | $ | 614 | $ | 546 | 12 | % | |||||||||||
| Operating margin | 20.3 | % | 18.6 | % | |||||||||||||
| Adjusted Operating Margin | 29.4 | % | 27.8 | % | |||||||||||||
|
MA: Global revenue
⇑
$125 million
|
U.S. Revenue
⇑
$64 million
|
Non-U.S. Revenue
⇑
$61 million
|
||||||
|
RD&A: Global revenue
⇑
$241 million
|
U.S. Revenue
⇑
$110 million
|
Non-U.S. Revenue
⇑
$131 million
|
||||||
|
ERS: Global revenue
⇑
$43 million
|
U.S. Revenue
⇑
$18 million
|
Non-U.S. Revenue
⇑
$25 million
|
||||||
|
MA: Operating and SG&A Expense
⇑
$35 million
|
||
| Compensation costs | Non-compensation costs | |||||||
|
— annual salary increases and hiring;
partially offset by:
|
— approximately $75 million in higher costs to support
strategic initiatives to enhance technology
infrastructure to enable automation, innovation and
efficiency as well as to support business growth;
partially offset by:
|
|||||||
| — benefits from the 2018 Restructuring Program | ||||||||
| — lower travel costs of approximately $40 million coupled with disciplined expense management across other expense categories in light of the COVID-19 crisis | ||||||||
| Other Expenses | ||
|
MA: Operating Margin 20.3%
⇑
170BPS
|
Adjusted Operating Margin 29.4%
⇑
160BPS
|
||||
|
Foreign Currency Forwards
(1)
|
Impact on fair value of contract if foreign currency weakened by 10% | |||||||||||||
| Sell | Buy | |||||||||||||
| U.S. dollar | British pound | $30 million unfavorable impact | ||||||||||||
| U.S. dollar | Canadian dollar | $10 million unfavorable impact | ||||||||||||
| U.S. dollar | Euro | $45 million unfavorable impact | ||||||||||||
| U.S. dollar | Japanese yen | $1 million unfavorable impact | ||||||||||||
| U.S. dollar | Singapore dollar | $5 million unfavorable impact | ||||||||||||
| U.S. dollar | Indian Rupee | $2 million unfavorable impact | ||||||||||||
| U.S. dollar | Russian Ruble | $1 million unfavorable impact | ||||||||||||
| Euro | British pound |
$14 million unfavorable impact
|
||||||||||||
| Year Ended December 31, |
$ Change
Favorable (unfavorable) |
||||||||||||||||
| 2020 | 2019 | ||||||||||||||||
| Net cash provided by operating activities | $ | 2,146 | $ | 1,675 | $ | 471 | |||||||||||
| Net cash (used in) provided by investing activities | $ | (1,077) | $ | 36 | $ | (1,113) | |||||||||||
| Net cash used in financing activities | $ | (351) | $ | (1,563) | $ | 1,212 | |||||||||||
|
Free Cash Flow
(1)
|
$ | 2,043 | $ | 1,606 | $ | 437 | |||||||||||
| Payments Due by Period | ||||||||||||||||||||||||||||||||
| (in millions) | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | Over 5 Years | |||||||||||||||||||||||||||
|
Indebtedness
(1)
|
$ | 9,167 | $ | 192 | $ | 1,373 | $ | 1,492 | $ | 6,110 | ||||||||||||||||||||||
| Operating lease obligations | 579 | 110 | 192 | 160 | 117 | |||||||||||||||||||||||||||
| Purchase obligations | 224 | 108 | 107 | 9 | — | |||||||||||||||||||||||||||
|
Pension obligations
(2)
|
149 | 46 | 22 | 21 | 60 | |||||||||||||||||||||||||||
|
Total
(3)
|
$ | 10,119 | $ | 456 | $ | 1,694 | $ | 1,682 | $ | 6,287 | ||||||||||||||||||||||
| Year ended December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Operating income | $ | 2,388 | $ | 1,998 | |||||||
| Adjustments: | |||||||||||
| Restructuring | 50 | 60 | |||||||||
| Depreciation and amortization | 220 | 200 | |||||||||
| Acquisition-Related Expenses | — | 3 | |||||||||
| Loss pursuant to the divestiture of MAKS | 9 | 14 | |||||||||
| Captive insurance company settlement | — | 16 | |||||||||
| Adjusted Operating Income | $ | 2,667 | $ | 2,291 | |||||||
| Operating margin | 44.5 | % | 41.4 | % | |||||||
| Adjusted Operating Margin | 49.7 | % | 47.4 | % | |||||||
| Year ended December 31, | |||||||||||||||||||||||
| Amounts in millions | 2020 | 2019 | |||||||||||||||||||||
| Net income attributable to Moody’s common shareholders | $ | 1,778 | $ | 1,422 | |||||||||||||||||||
| Pre-Tax Acquisition-Related Expenses | $ | — | $ | 3 | |||||||||||||||||||
| Tax on Acquisition-Related Expenses | — | — | |||||||||||||||||||||
| Net Acquisition-Related Expenses | — | 3 | |||||||||||||||||||||
| Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 124 | $ | 103 | |||||||||||||||||||
| Tax on Acquisition-Related Intangible Amortization Expenses | (28) | (24) | |||||||||||||||||||||
| Net Acquisition-Related Intangible Amortization Expenses | 96 | 79 | |||||||||||||||||||||
| Pre-Tax Restructuring | $ | 50 | $ | 60 | |||||||||||||||||||
| Tax on Restructuring | (12) | (15) | |||||||||||||||||||||
| Net Restructuring | 38 | 45 | |||||||||||||||||||||
| Pre-tax captive insurance company settlement | $ | — | $ | 16 | |||||||||||||||||||
| Tax on captive insurance company settlement | — | (4) | |||||||||||||||||||||
| Net captive insurance company settlement | — | 12 | |||||||||||||||||||||
| Tax charge pursuant to the divestiture of MAKS | — | 13 | |||||||||||||||||||||
| Loss pursuant to the divestiture of MAKS | 9 | 14 | |||||||||||||||||||||
| Adjusted Net Income | $ | 1,921 | $ | 1,588 | |||||||||||||||||||
| Year ended December 31, | |||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||
| Diluted earnings per share attributable to Moody’s common shareholders | $ | 9.39 | $ | 7.42 | |||||||||||||||||||
| Pre-Tax Acquisition-Related Expenses | $ | — | $ | 0.02 | |||||||||||||||||||
| Tax on Acquisition-Related Expenses | — | — | |||||||||||||||||||||
| Net Acquisition-Related Expenses | — | 0.02 | |||||||||||||||||||||
| Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 0.66 | $ | 0.54 | |||||||||||||||||||
| Tax on Acquisition-Related Intangible Amortization Expenses | (0.15) | (0.12) | |||||||||||||||||||||
| Net Acquisition-Related Intangible Amortization Expenses | 0.51 | 0.42 | |||||||||||||||||||||
| Pre-Tax Restructuring | $ | 0.26 | $ | 0.31 | |||||||||||||||||||
| Tax on Restructuring | (0.06) | (0.08) | |||||||||||||||||||||
| Net Restructuring | 0.20 | 0.23 | |||||||||||||||||||||
| Pre-tax captive insurance company settlement | $ | — | $ | 0.08 | |||||||||||||||||||
| Tax on captive insurance company settlement | — | (0.02) | |||||||||||||||||||||
| Net captive insurance company settlement | — | 0.06 | |||||||||||||||||||||
| Tax charge pursuant to the divestiture of MAKS | — | 0.07 | |||||||||||||||||||||
| Loss pursuant to the divestiture of MAKS | 0.05 | 0.07 | |||||||||||||||||||||
| Adjusted Diluted EPS | $ | 10.15 | $ | 8.29 | |||||||||||||||||||
| Year ended December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Net cash provided by operating activities | $ | 2,146 | $ | 1,675 | |||||||
| Capital additions | (103) | (69) | |||||||||
| Free Cash Flow | $ | 2,043 | $ | 1,606 | |||||||
| Net cash (used in) provided by investing activities | $ | (1,077) | $ | 36 | |||||||
| Net cash used in financing activities | $ | (351) | $ | (1,563) | |||||||
| Acquisition | Acquisition Date | Period excluded to determine organic revenue growth | |||||||||
| RiskFirst | July 25, 2019 | January 1, 2020 - July 24, 2020 | |||||||||
| ABS Suite | October 1, 2019 | January 1, 2020 - September 30, 2020 | |||||||||
| Regulatory DataCorp | February 13, 2020 | February 13, 2020 - December 31, 2020 | |||||||||
| Acquire Media | October 21, 2020 | October 21, 2020 - December 31, 2020 | |||||||||
| Divestiture | Divestiture Date | ||||||||||
| MAKS | November 7, 2019 | January 1, 2019 - November 7, 2019 | |||||||||
| Year Ended December 31, | |||||||||||||||||||||||
| Amounts in millions | 2020 | 2019 | Change | Growth | |||||||||||||||||||
|
MA revenue
|
$ | 2,079 | $ | 1,954 | $ | 125 | 6% | ||||||||||||||||
| RiskFirst | (12) | — | (12) | ||||||||||||||||||||
| ABS Suite | (6) | — | (6) | ||||||||||||||||||||
| Regulatory Data Corp | (52) | — | (52) | ||||||||||||||||||||
| Acquire Media | (2) | — | (2) | ||||||||||||||||||||
| MAKS | — | (94) | 94 | ||||||||||||||||||||
|
Organic MA revenue
|
$ | 2,007 | $ | 1,860 | $ | 147 | 8% | ||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||
| Amounts in millions | 2020 | 2019 | Change | Growth | |||||||||||||||||||
|
RD&A revenue
|
$ | 1,514 | $ | 1,273 | $ | 241 | 19% | ||||||||||||||||
| ABS Suite | (6) | — | (6) | ||||||||||||||||||||
| Regulatory Data Corp | (52) | — | (52) | ||||||||||||||||||||
| Acquire Media | (2) | — | (2) | ||||||||||||||||||||
| MALS | (56) | — | (56) | ||||||||||||||||||||
| Organic RD&A revenue | $ | 1,398 | $ | 1,273 | $ | 125 | 10% | ||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||
| Amounts in millions | 2020 | 2019 | Change | Growth | |||||||||||||||||||
| ERS revenue | $ | 565 | $ | 522 | $ | 43 | 8% | ||||||||||||||||
| RiskFirst revenue | (12) | — | (12) | ||||||||||||||||||||
|
Organic ERS revenue
|
$ | 553 | $ | 522 | $ | 31 | 6% | ||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Revenue | $ |
|
$ |
|
$ |
|
|||||||||||
| Expenses | |||||||||||||||||
| Operating |
|
|
|
||||||||||||||
| Selling, general and administrative |
|
|
|
||||||||||||||
| Restructuring |
|
|
|
||||||||||||||
| Depreciation and amortization |
|
|
|
||||||||||||||
| Acquisition-Related Expenses |
|
|
|
||||||||||||||
| Loss pursuant to the divestiture of MAKS |
|
|
|
||||||||||||||
| Total expenses |
|
|
|
||||||||||||||
| Operating income |
|
|
|
||||||||||||||
| Non-operating (expense) income, net | |||||||||||||||||
| Interest expense, net |
(
|
(
|
(
|
||||||||||||||
| Other non-operating income, net |
|
|
|
||||||||||||||
|
Non-operating (expense) income, net
|
(
|
(
|
(
|
||||||||||||||
| Income before provision for income taxes |
|
|
|
||||||||||||||
| Provision for income taxes |
|
|
|
||||||||||||||
| Net income |
|
|
|
||||||||||||||
| Less: Net (loss) income attributable to noncontrolling interests |
(
|
|
|
||||||||||||||
| Net income attributable to Moody’s | $ |
|
$ |
|
$ |
|
|||||||||||
| Earnings per share | |||||||||||||||||
| Basic | $ |
|
$ |
|
$ |
|
|||||||||||
| Diluted | $ |
|
$ |
|
$ |
|
|||||||||||
| Weighted average shares outstanding | |||||||||||||||||
| Basic |
|
|
|
||||||||||||||
| Diluted |
|
|
|
||||||||||||||
| Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
Pre-tax
amounts |
Tax
amounts |
After-tax
amounts |
Pre-tax
amounts |
Tax
amounts |
After-tax
amounts |
Pre-tax
amounts |
Tax
amounts |
After-tax
amounts |
|||||||||||||||||||||||||||||||||||||||||||||
| Net Income | $ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Other Comprehensive Income (Loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign Currency Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments, net | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments - reclassification of losses included in net income |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Net (losses) gains on net investment hedges |
(
|
|
(
|
|
(
|
|
|
(
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Net investment hedges - reclassification of gains
included in net income |
(
|
|
(
|
(
|
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net losses on cash flow hedges |
(
|
|
(
|
|
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of losses included in net income |
|
(
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Pension and Other Retirement Benefits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of actuarial losses/prior service costs and settlement charge included in net income |
|
(
|
|
|
(
|
|
|
(
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Net actuarial (losses) gains and prior service costs |
(
|
|
(
|
(
|
|
(
|
|
(
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total Other Comprehensive (Loss) Income | $ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||||||||||||||
| Comprehensive Income |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: comprehensive (loss) income attributable to noncontrolling interests |
(
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive Income Attributable to Moody’s | $ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ |
|
$ |
|
|||||||
| Short-term investments |
|
|
|||||||||
|
Accounts receivable, net of allowances for credit losses of $
|
|
|
|||||||||
| Other current assets |
|
|
|||||||||
| Total current assets |
|
|
|||||||||
| Property and equipment, net |
|
|
|||||||||
| Operating lease right-of-use assets |
|
|
|||||||||
| Goodwill |
|
|
|||||||||
| Intangible assets, net |
|
|
|||||||||
| Deferred tax assets, net |
|
|
|||||||||
| Other assets |
|
|
|||||||||
| Total assets | $ |
|
$ |
|
|||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ |
|
$ |
|
|||||||
| Current portion of operating lease liabilities |
|
|
|||||||||
| Deferred revenue |
|
|
|||||||||
| Total current liabilities |
|
|
|||||||||
| Non-current portion of deferred revenue |
|
|
|||||||||
| Long-term debt |
|
|
|||||||||
| Deferred tax liabilities, net |
|
|
|||||||||
| Uncertain tax positions |
|
|
|||||||||
| Operating lease liabilities |
|
|
|||||||||
| Other liabilities |
|
|
|||||||||
| Total liabilities |
|
|
|||||||||
| Contingencies (Note 21) |
|
|
|||||||||
| Redeemable noncontrolling interest |
|
|
|||||||||
| Shareholders’ equity: | |||||||||||
|
Preferred stock, par value $
|
|
|
|||||||||
|
Series common stock, par value $
|
|
|
|||||||||
|
Common stock, par value $
|
|
|
|||||||||
| Capital surplus |
|
|
|||||||||
| Retained earnings |
|
|
|||||||||
|
Treasury stock, at cost;
|
(
|
(
|
|||||||||
| Accumulated other comprehensive loss |
(
|
(
|
|||||||||
| Total Moody’s shareholders’ equity |
|
|
|||||||||
| Noncontrolling interests |
|
|
|||||||||
| Total shareholders’ equity |
|
|
|||||||||
| Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ |
|
$ |
|
|||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
|||||||||||
| Reconciliation of net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization |
|
|
|
||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||
| Deferred income taxes |
(
|
(
|
(
|
||||||||||||||
| Prepayment penalty relating to early redemption of debt |
|
|
|
||||||||||||||
| Settlement of treasury rate lock |
(
|
|
|
||||||||||||||
| ROU Asset impairment & other non-cash restructuring/impairment charges |
|
|
|
||||||||||||||
| Loss pursuant to the divestiture of MAKS |
|
|
|
||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable |
|
(
|
(
|
||||||||||||||
| Other current assets |
(
|
(
|
(
|
||||||||||||||
| Other assets |
(
|
(
|
(
|
||||||||||||||
| Lease obligations |
(
|
(
|
|
||||||||||||||
| Accounts payable and accrued liabilities |
|
|
(
|
||||||||||||||
| Deferred revenue |
(
|
|
|
||||||||||||||
|
Unrecognized tax positions and other non-current tax liabilities
|
(
|
|
|
||||||||||||||
| Other liabilities |
(
|
|
(
|
||||||||||||||
| Net cash provided by operating activities |
|
|
|
||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital additions |
(
|
(
|
(
|
||||||||||||||
| Purchases of investments |
(
|
(
|
(
|
||||||||||||||
| Sales and maturities of investments |
|
|
|
||||||||||||||
| Cash received upon disposal of a business, net of cash transferred to purchaser |
|
|
|
||||||||||||||
| Cash paid for acquisitions, net of cash acquired |
(
|
(
|
(
|
||||||||||||||
| Receipts from settlements of net investment hedges |
|
|
|
||||||||||||||
| Payments for settlements of net investment hedges |
(
|
(
|
|
||||||||||||||
| Net cash (used in) provided by investing activities |
(
|
|
(
|
||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Issuance of notes |
|
|
|
||||||||||||||
| Repayment of notes |
(
|
(
|
(
|
||||||||||||||
| Issuance of commercial paper |
|
|
|
||||||||||||||
| Repayment of commercial paper |
(
|
(
|
(
|
||||||||||||||
| Proceeds from stock-based compensation plans |
|
|
|
||||||||||||||
| Repurchase of shares related to stock-based compensation |
(
|
(
|
(
|
||||||||||||||
| Treasury shares |
(
|
(
|
(
|
||||||||||||||
| Dividends |
(
|
(
|
(
|
||||||||||||||
| Dividends to noncontrolling interests |
(
|
(
|
(
|
||||||||||||||
| Payment for noncontrolling interest |
(
|
(
|
|
||||||||||||||
| Debt issuance costs, extinguishment costs and related fees |
(
|
(
|
(
|
||||||||||||||
| Net cash used in financing activities |
(
|
(
|
(
|
||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents |
|
(
|
(
|
||||||||||||||
| Increase in cash and cash equivalents |
|
|
|
||||||||||||||
| Cash and cash equivalents, beginning of period |
|
|
|
||||||||||||||
| Cash and cash equivalents, end of period | $ |
|
$ |
|
$ |
|
|||||||||||
| Shareholders of Moody’s Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock |
Accumulated
Other Comprehensive Loss |
Total Moody’s
Shareholders’ (Deficit) Equity |
Non-
Controlling Interests |
Total
Shareholders’ (Deficit) Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount |
Capital
Surplus |
Retained
Earnings |
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Balance at December 31, 2017
|
|
$ |
|
$ |
|
$ |
|
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dividends ($
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adoption of Revenue Accounting Standard |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adoption of ASU 2016-01 |
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued for stock-based compensation plans at average cost, net |
(
|
|
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury shares repurchased |
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Currency translation adjustment, net of net investment hedge activity (net of tax of $
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net actuarial gains and prior service cost (net of tax of $
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Amortization of prior service costs and actuarial losses (net of tax of $
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net realized and unrealized gain on cash flow hedges (net of tax of $
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2018 |
|
$ |
|
$ |
|
$ |
|
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||
| Shareholders of Moody’s Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock |
Accumulated
Other Comprehensive Loss |
Total Moody’s
Shareholders’ Equity |
Non-
Controlling Interests |
Total
Shareholders’ Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount |
Capital
Surplus |
Retained
Earnings |
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2018 |
|
$ |
|
$ |
|
$ |
|
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dividends ($
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
(
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued for stock-based compensation plans at average cost, net |
(
|
|
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest |
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-controlling interest resulting from majority acquisition of Vigeo Eiris |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury shares repurchased |
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Currency translation adjustment, net of net investment hedge activity (net of tax of $
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net actuarial losses and prior service cost (net of tax of $
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Amortization of prior service costs and actuarial losses (net of tax of $
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2019 |
|
$ |
|
$ |
|
$ |
|
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||
| Shareholders of Moody’s Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock |
Accumulated
Other Comprehensive Loss |
Total Moody’s
Shareholders’ Equity |
Non-
Controlling Interests |
Total
Shareholders’ Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount |
Capital
Surplus |
Retained
Earnings |
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2019 |
|
$ |
|
$ |
|
$ |
|
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dividends ($
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued for stock-based compensation plans at average cost, net |
(
|
|
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest |
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury shares repurchased |
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Currency translation adjustment, net of net investment hedge activity (net of tax of $
|
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net actuarial losses and prior service cost (net of tax of $
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Amortization of prior service costs and actuarial losses (net of tax of $
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net realized and unrealized loss on cash flow hedges (net of tax of $
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2020 |
|
$ |
|
$ |
|
$ |
|
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| MIS: | |||||||||||||||||
| Corporate finance (CFG) | |||||||||||||||||
| Investment-grade | $ |
|
$ |
|
$ |
|
|||||||||||
| High-yield |
|
|
|
||||||||||||||
| Bank loans |
|
|
|
||||||||||||||
|
Other accounts (CFG)
(1)
|
|
|
|
||||||||||||||
| Total CFG |
|
|
|
||||||||||||||
| Structured finance (SFG) | |||||||||||||||||
| Asset-backed securities |
|
|
|
||||||||||||||
| RMBS |
|
|
|
||||||||||||||
| CMBS |
|
|
|
||||||||||||||
| Structured credit |
|
|
|
||||||||||||||
| Other accounts (SFG) |
|
|
|
||||||||||||||
| Total SFG |
|
|
|
||||||||||||||
| Financial institutions (FIG) | |||||||||||||||||
| Banking |
|
|
|
||||||||||||||
| Insurance |
|
|
|
||||||||||||||
| Managed investments |
|
|
|
||||||||||||||
| Other accounts (FIG) |
|
|
|
||||||||||||||
| Total FIG |
|
|
|
||||||||||||||
| Public, project and infrastructure finance (PPIF) | |||||||||||||||||
| Public finance / sovereign |
|
|
|
||||||||||||||
| Project and infrastructure |
|
|
|
||||||||||||||
| Total PPIF |
|
|
|
||||||||||||||
| Total ratings revenue |
|
|
|
||||||||||||||
| MIS Other |
|
|
|
||||||||||||||
| Total external revenue |
|
|
|
||||||||||||||
| Intersegment royalty |
|
|
|
||||||||||||||
| Total MIS |
|
|
|
||||||||||||||
| MA: | |||||||||||||||||
| Research, data and analytics (RD&A) |
|
|
|
||||||||||||||
| Enterprise risk solutions (ERS) |
|
|
|
||||||||||||||
|
Professional services (PS)
(2)
|
|
|
|
||||||||||||||
| Total external revenue |
|
|
|
||||||||||||||
| Intersegment revenue |
|
|
|
||||||||||||||
| Total MA |
|
|
|
||||||||||||||
| Eliminations |
(
|
(
|
(
|
||||||||||||||
| Total MCO | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||||||||||||||||||||||||||||
| MIS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate finance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Structured finance |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Financial institutions |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Public, project and infrastructure finance |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total ratings revenue |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| MIS Other |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total MIS |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| MA: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Research, data and analytics |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Enterprise risk solutions |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Professional services (PS)
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total MA |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total MCO | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
|
2020
|
2019
|
2018
|
||||||||||||||||||
| MIS: | ||||||||||||||||||||
| U.S. | $ |
|
$ |
|
$ |
|
||||||||||||||
| Non-U.S.: | ||||||||||||||||||||
| EMEA |
|
|
|
|||||||||||||||||
| Asia-Pacific |
|
|
|
|||||||||||||||||
| Americas |
|
|
|
|||||||||||||||||
| Total Non-U.S. |
|
|
|
|||||||||||||||||
| Total MIS |
|
|
|
|||||||||||||||||
| MA: | ||||||||||||||||||||
| U.S. |
|
|
|
|||||||||||||||||
| Non-U.S.: | ||||||||||||||||||||
| EMEA |
|
|
|
|||||||||||||||||
| Asia-Pacific |
|
|
|
|||||||||||||||||
| Americas |
|
|
|
|||||||||||||||||
| Total Non-U.S. |
|
|
|
|||||||||||||||||
| Total MA |
|
|
|
|||||||||||||||||
| Total MCO | $ |
|
$ |
|
$ |
|
||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 |
2018
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Transaction | Relationship | Total | Transaction | Relationship | Total | Transaction | Relationship | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Corporate Finance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Structured Finance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Financial Institutions | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Public, Project and Infrastructure Finance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| MIS Other | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Total MIS | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Research, data and analytics | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Enterprise risk solutions | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
|
Professional services
(1)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Total MA | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Total Moody’s Corporation | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| MIS | MA | Total | MIS | MA | Total | MIS | MA | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Revenue recognized at a point in time | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Revenue recognized over time |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2020 | |||||||||||||||||
| MIS | MA | Total | |||||||||||||||
| Balance at December 31, 2019 | $ |
|
$ |
|
$ |
|
|||||||||||
| Changes in deferred revenue | |||||||||||||||||
| Revenue recognized that was included in the deferred revenue balance at the beginning of the period |
(
|
(
|
(
|
||||||||||||||
| Increases due to amounts billable excluding amounts recognized as revenue during the period |
|
|
|
||||||||||||||
| Increases due to acquisitions during the period |
|
|
|
||||||||||||||
| Effect of exchange rate changes |
|
|
|
||||||||||||||
| Total changes in deferred revenue |
(
|
|
|
||||||||||||||
| Balance at December 31, 2020 | $ |
|
$ |
|
$ |
|
|||||||||||
| Deferred revenue - current | $ |
|
$ |
|
$ |
|
|||||||||||
| Deferred revenue - noncurrent | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, 2019 | |||||||||||||||||
| MIS | MA | Total | |||||||||||||||
| Balance at December 31, 2018 | $ |
|
$ |
|
$ |
|
|||||||||||
| Changes in deferred revenue | |||||||||||||||||
| Revenue recognized that was included in the deferred revenue balance at the beginning of the period |
(
|
(
|
(
|
||||||||||||||
| Increases due to amounts billable excluding amounts recognized as revenue during the period |
|
|
|
||||||||||||||
| Increases due to acquisitions during the period |
|
|
|
||||||||||||||
| Effect of exchange rate changes |
|
|
|
||||||||||||||
| Total changes in deferred revenue |
(
|
|
|
||||||||||||||
| Balance at December 31, 2019 | $ |
|
$ |
|
$ |
|
|||||||||||
| Deferred revenue—current | $ |
|
$ |
|
$ |
|
|||||||||||
| Deferred revenue—noncurrent | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, 2018 | |||||||||||||||||
| MIS | MA | Total | |||||||||||||||
| Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment) | $ |
|
$ |
|
$ |
|
|||||||||||
| Changes in deferred revenue | |||||||||||||||||
| Revenue recognized that was included in the deferred revenue balance at the beginning of the period |
(
|
(
|
(
|
||||||||||||||
| Increases due to amounts billable excluding amounts recognized as revenue during the period |
|
|
|
||||||||||||||
| Increases due to acquisitions during the period |
|
|
|
||||||||||||||
| Effect of exchange rate changes |
(
|
(
|
(
|
||||||||||||||
| Total changes in deferred revenue |
(
|
|
|
||||||||||||||
| Balance at December 31, 2018 | $ |
|
$ |
|
$ |
|
|||||||||||
| Deferred revenue—current | $ |
|
$ |
|
$ |
|
|||||||||||
| Deferred revenue—noncurrent | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Basic |
|
|
|
||||||||||||||
| Dilutive effect of shares issuable under stock-based compensation plans |
|
|
|
||||||||||||||
| Diluted |
|
|
|
||||||||||||||
| Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above |
|
|
|
||||||||||||||
| As of December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Cost | Gross Unrealized Gains | Fair Value | Balance sheet location | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | Short-term investments | Other assets | |||||||||||||||||||||||||||||||||
|
Certificates of deposit and money market deposit accounts
(1)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Mutual funds | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| As of December 31, 2019 | |||||||||||||||||||||||||||||||||||
| Cost | Gross Unrealized Gains | Fair Value | Balance sheet location | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | Short-term investments | Other assets | |||||||||||||||||||||||||||||||||
|
Certificates of deposit and money market deposit accounts
(1)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Mutual funds | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Nature of Swap |
Notional Amount
As of December 31, |
Floating Interest Rate | ||||||||||||||||||||||||
| Hedged Item | 2020 | 2019 | ||||||||||||||||||||||||
| 2012 Senior Notes due 2022 |
|
$ |
|
$ |
|
|
||||||||||||||||||||
|
2017 Senior Notes due 2021
(1)
|
|
$ |
|
$ |
|
|
||||||||||||||||||||
| 2017 Senior Notes due 2023 |
|
$ |
|
$ |
|
|
||||||||||||||||||||
|
2017 Senior Notes due 2028
(2)
|
|
$ |
|
$ |
|
|
||||||||||||||||||||
|
2020 Senior Notes due 2025
(3)
|
|
$ |
|
$ |
|
|
||||||||||||||||||||
| Total | $ |
|
$ |
|
||||||||||||||||||||||
| Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded |
Amount of Income
Recognized in the Consolidated Statements of Operations |
|||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||||||||
| Interest expense, net | $ |
(
|
$ |
(
|
$ |
(
|
||||||||||||||||||||
|
Descriptions |
Location on Consolidated Statements of Operations | |||||||||||||||||||||||||
| Net interest settlements and accruals on interest rate swaps | Interest expense, net | $ |
|
$ |
|
$ |
(
|
|||||||||||||||||||
| Fair value changes on interest rate swaps | Interest expense, net |
|
|
|
||||||||||||||||||||||
| Fair value changes on hedged debt | Interest expense, net | $ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||
| Pay | Receive | |||||||||||||||||||||||||
| Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | ||||||||||||||||||||||
|
|
€ |
|
|
$ |
|
|
||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
| Total | € |
|
$ |
|
||||||||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||
| Pay | Receive | |||||||||||||||||||||||||
| Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | ||||||||||||||||||||||
|
|
€ |
|
|
$ |
|
|
||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
|
Total
|
€ |
|
$ |
|
||||||||||||||||||||||
| Year Ending December 31, | ||||||||
| 2021 | € |
|
||||||
| 2022 | € |
|
||||||
| 2023 | € |
|
||||||
| 2024 | € |
|
||||||
| 2026 | € |
|
||||||
| Total | € |
|
||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| Notional amount of net investment hedges | Sell | Buy | Sell | Buy | ||||||||||||||||||||||
| Contract to sell EUR for USD | € |
|
$ |
|
— | — | ||||||||||||||||||||
| Contract to sell GBP for EUR | £ |
|
€ |
|
— | — | ||||||||||||||||||||
|
Amount of Gain/(Loss)
Recognized in AOCI on Derivative, net of Tax |
Amount of Gain/(Loss)
Reclassified from AOCI into Income, net of tax |
Gain/(Loss) Recognized in
Income on Derivative (Amount Excluded from Effectiveness Testing) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
| FX forward contracts | $ |
(
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||||||||||
| Cross currency swaps |
(
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt |
(
|
(
|
(1)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Total net investment hedges | $ |
(
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||||||||||
| Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cross currency swap | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||||||||||
| Interest rate contracts |
(
|
|
(
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Total cash flow hedges |
(
|
|
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||||||||||
| Cumulative Gains/(Losses), net of tax | |||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||
| Net investment hedges | |||||||||||
| Cross currency swaps | $ |
(
|
$ |
|
|||||||
| FX forwards |
|
|
|||||||||
| Long-term debt |
(
|
(
|
|||||||||
| Total net investment hedges |
(
|
|
|||||||||
| Cash flow hedges | |||||||||||
| Interest Rate Contract |
(
|
(
|
|||||||||
| Cross-currency swap |
|
|
|||||||||
| Total cash flow hedges |
(
|
|
|||||||||
| Total net (loss) gain in AOCI | $ |
(
|
$ |
|
|||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
| Notional Amount of Currency Pair: | Sell | Buy | Sell | Buy | |||||||||||||||||||||||||
| Contracts to sell USD for GBP | $ |
|
£
|
|
$ |
|
£
|
|
|||||||||||||||||||||
| Contracts to sell USD for Japanese Yen | $ |
|
¥ |
|
$ |
|
¥ |
|
|||||||||||||||||||||
| Contracts to sell USD for Canadian dollars | $ |
|
C$
|
|
$ |
|
C$
|
|
|||||||||||||||||||||
| Contracts to sell USD for Singapore dollars | $ |
|
S$
|
|
$ |
|
S$
|
|
|||||||||||||||||||||
| Contracts to sell USD for Euros | $ |
|
€
|
|
$ |
|
€
|
|
|||||||||||||||||||||
| Contracts to sell Euros for GBP | € |
|
£
|
|
€ |
|
£
|
|
|||||||||||||||||||||
| Contracts to sell USD for Russian Ruble | $ |
|
₽ |
|
$ | — | ₽ | — | |||||||||||||||||||||
| Contracts to sell USD for Indian Rupee | $ |
|
₹
|
|
$ | — |
₹
|
— | |||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| Derivatives Not Designated as Accounting Hedges | Location on Statement of Operations | 2020 | 2019 | 2018 | ||||||||||||||||
| FX forwards | Other non-operating expense, net | $ |
|
$ |
(
|
$ |
(
|
|||||||||||||
| Derivative and Non-derivative Instruments | |||||||||||||||||
| Balance Sheet Location | December 31, 2020 | December 31, 2019 | |||||||||||||||
| Assets: | |||||||||||||||||
| Derivatives designated as accounting hedges: | |||||||||||||||||
| Cross-currency swaps designated as net investment hedges | Other assets | $ |
|
$ |
|
||||||||||||
| Interest rate swaps designated as fair value hedges | Other assets |
|
|
||||||||||||||
| Total derivatives designated as accounting hedges |
|
|
|||||||||||||||
| Derivatives not designated as accounting hedges: | |||||||||||||||||
| FX forwards on certain assets and liabilities | Other current assets |
|
|
||||||||||||||
| Total assets | $ |
|
$ |
|
|||||||||||||
| Liabilities: | |||||||||||||||||
| Derivatives designated as accounting hedges: | |||||||||||||||||
| FX forwards designated as net investment hedges | Accounts payable and accrued liabilities | $ |
|
$ |
|
||||||||||||
| Cross-currency swaps designated as net investment hedges | Accounts payable and accrued liabilities |
|
|
||||||||||||||
| Cross-currency swaps designated as net investment hedges | Other liabilities |
|
|
||||||||||||||
| Interest rate swaps | Other liabilities |
|
|
||||||||||||||
| Total derivatives designated as accounting hedges |
|
|
|||||||||||||||
| Non-derivative instrument designated as accounting hedge: | |||||||||||||||||
| Long-term debt designated as net investment hedge | Long-term debt |
|
|
||||||||||||||
| Derivatives not designated as accounting hedges: | |||||||||||||||||
| FX forwards on certain assets and liabilities | Accounts payable and accrued liabilities |
|
|
||||||||||||||
| Total liabilities | $ |
|
$ |
|
|||||||||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
|
Office and computer equipment (
|
$ |
|
$ |
|
|||||||
|
Office furniture and fixtures (
|
|
|
|||||||||
|
Internal-use computer software (
|
|
|
|||||||||
|
Leasehold improvements and building (
|
|
|
|||||||||
| Total property and equipment, at cost |
|
|
|||||||||
| Less: accumulated depreciation and amortization |
(
|
(
|
|||||||||
| Total property and equipment, net | $ |
|
$ |
|
|||||||
| Cash paid at closing | $ |
|
||||||
|
Additional consideration paid to sellers in 2020
(1)
|
|
|||||||
| Total consideration | $ |
|
||||||
| (Amounts in millions) | |||||||||||
| Current assets | $ |
|
|||||||||
| Intangible assets: | |||||||||||
|
Customer relationships (
|
$ |
|
|||||||||
|
Database (
|
|
||||||||||
|
Product technology (
|
|
||||||||||
|
Trade name (
|
|
||||||||||
|
Total intangible assets (
|
|
||||||||||
| Goodwill |
|
||||||||||
| Other assets |
|
||||||||||
| Liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ |
(
|
|||||||||
| Deferred revenue |
(
|
||||||||||
| Deferred tax liabilities |
(
|
||||||||||
| Other liabilities |
(
|
||||||||||
| Total liabilities |
(
|
||||||||||
| Net assets acquired | $ |
|
|||||||||
| (Amounts in millions) | |||||||||||
| Current assets | $ |
|
|||||||||
| Property and equipment |
|
||||||||||
| Intangible assets: | |||||||||||
|
Customer relationships (
|
$ |
|
|||||||||
|
Database (
|
|
||||||||||
|
Product technology (
|
|
||||||||||
|
Trade name (
|
|
||||||||||
|
Total intangible assets (
|
|
||||||||||
| Goodwill |
|
||||||||||
| Deferred tax assets |
|
||||||||||
| Liabilities: | |||||||||||
| Deferred revenue | $ |
(
|
|||||||||
| Accounts payable and accrued liabilities |
(
|
||||||||||
| Deferred tax liabilities |
(
|
||||||||||
| Total liabilities |
(
|
||||||||||
| Net assets acquired | $ |
|
|||||||||
| (Amounts in millions) | ||||||||
| Current assets | $ |
|
||||||
| Intangible assets: | ||||||||
|
Customer relationships (
|
$ |
|
||||||
|
Product technology (
|
|
|||||||
|
Database (
|
|
|||||||
|
Trade name (
|
|
|||||||
|
Total intangible assets (
|
|
|||||||
| Goodwill |
|
|||||||
| Other assets |
|
|||||||
| Total assets acquired |
|
|||||||
| Current liabilities |
|
|||||||
| Long-term liabilities |
|
|||||||
| Total liabilities assumed |
|
|||||||
| Net assets acquired | $ |
|
||||||
| Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| MIS | MA | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
Gross
goodwill |
Accumulated
impairment charge |
Net
goodwill |
Gross
goodwill |
Accumulated
impairment charge |
Net
goodwill |
Gross
goodwill |
Accumulated
impairment charge |
Net
goodwill |
|||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of year | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
Additions/
adjustments
(1)
|
(
|
— |
(
|
|
— |
|
|
— |
|
||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments |
(
|
— |
(
|
|
— |
|
|
— |
|
||||||||||||||||||||||||||||||||||||||||||||
| Ending Balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| MIS | MA | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
Gross
goodwill |
Accumulated
impairment charge |
Net
goodwill |
Gross
goodwill |
Accumulated
impairment charge |
Net
goodwill |
Gross
goodwill |
Accumulated
impairment charge |
Net
goodwill |
|||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of year | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||
|
Additions/
adjustments
(2)
|
|
— |
|
|
— |
|
|
— |
|
||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments |
|
— |
|
(
|
— |
(
|
(
|
— |
(
|
||||||||||||||||||||||||||||||||||||||||||||
| Divestiture of MAKS | $ |
(
|
$ |
(
|
$ |
(
|
$ | — | $ |
(
|
|||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Customer relationships | $ |
|
$ |
|
|||||||
| Accumulated amortization |
(
|
(
|
|||||||||
| Net customer relationships |
|
|
|||||||||
| Trade secrets |
|
|
|||||||||
| Accumulated amortization |
(
|
(
|
|||||||||
| Net trade secrets |
|
|
|||||||||
| Software/product technology |
|
|
|||||||||
| Accumulated amortization |
(
|
(
|
|||||||||
| Net software/product technology |
|
|
|||||||||
| Trade names |
|
|
|||||||||
| Accumulated amortization |
(
|
(
|
|||||||||
| Net trade names |
|
|
|||||||||
|
Other
(1)
|
|
|
|||||||||
| Accumulated amortization |
(
|
(
|
|||||||||
| Net other |
|
|
|||||||||
| Total | $ |
|
$ |
|
|||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Amortization expense | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ending December 31, | ||||||||
| 2021 | $ |
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| Thereafter |
|
|||||||
| Total estimated future amortization | $ |
|
||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| 2018 Restructuring Program | $ |
(
|
$ |
|
$ |
|
|||||||||||
| 2020 Real Estate Rationalization Restructuring Program |
|
|
|
||||||||||||||
| 2020 MA Strategic Reorganization Restructuring Program |
|
|
|
||||||||||||||
| Total Restructuring | $ |
|
$ |
|
$ |
|
|||||||||||
| Employee Termination Costs | Contract Termination Costs | Total Restructuring Liability | |||||||||||||||
| Balance as of December 31, 2018 | $ |
|
$ |
|
$ |
|
|||||||||||
|
2018 Restructuring Program
(1)
:
|
|||||||||||||||||
|
|
|
(
|
(
|
||||||||||||||
| Cost incurred and adjustments |
|
|
|
||||||||||||||
| Cash payments and adjustments |
(
|
(
|
(
|
||||||||||||||
| Balance as of December 31, 2019 | $ |
|
$ |
|
$ |
|
|||||||||||
| 2018 Restructuring Program: | |||||||||||||||||
| Cost incurred and adjustments |
(
|
|
(
|
||||||||||||||
| Cash payments and adjustments |
(
|
(
|
(
|
||||||||||||||
|
2020 Real Estate Rationalization Restructuring Program
(3)
:
|
|||||||||||||||||
| Cost incurred and adjustments |
|
|
|
||||||||||||||
| 2020 MA Strategic Reorganization Restructuring Program: | |||||||||||||||||
| Cost incurred and adjustments |
|
|
|
||||||||||||||
| Balance as of December 31, 2020 | $ |
|
$ |
|
$ |
|
|||||||||||
| Cumulative expense incurred to date | |||||||||||||||||
| 2018 Restructuring Program | $ |
|
$ |
|
|||||||||||||
| 2020 Real Estate Rationalization Restructuring Program: | $ |
|
$ |
|
|||||||||||||
| 2020 MA Strategic Reorganization Restructuring Program: | $ |
|
$ |
|
|||||||||||||
| Fair value Measurement as of December 31, 2020 | |||||||||||||||||||||||
| Description | Balance | Level 1 | Level 2 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
|
Derivatives
(1)
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||
| Mutual funds |
|
|
|
||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
|
Derivatives
(1)
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||||||||
| Fair Value Measurement as of December 31, 2019 | |||||||||||||||||||||||
| Description | Balance | Level 1 | Level 2 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
|
Derivatives
(1)
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||
| Mutual funds |
|
|
|
||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Other current assets: | |||||||||||
| Prepaid taxes | $ |
|
$ |
|
|||||||
| Prepaid expenses |
|
|
|||||||||
| Capitalized costs to obtain and fulfill sales contracts |
|
|
|||||||||
| Foreign exchange forwards on certain assets and liabilities |
|
|
|||||||||
| Other |
|
|
|||||||||
| Total other current assets | $ |
|
$ |
|
|||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Other assets: | |||||||||||
| Investments in non-consolidated affiliates | $ |
|
$ |
|
|||||||
| Deposits for real-estate leases |
|
|
|||||||||
| Indemnification assets related to acquisitions |
|
|
|||||||||
| Mutual funds and fixed deposits |
|
|
|||||||||
| Company owned life insurance (at contract value) |
|
|
|||||||||
| Costs to obtain sales contracts |
|
|
|||||||||
| Derivative instruments designated as accounting hedges |
|
|
|||||||||
| Pension and other retirement employee benefits |
|
|
|||||||||
| Other |
|
|
|||||||||
| Total other assets | $ |
|
$ |
|
|||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Accounts payable and accrued liabilities: | |||||||||||
| Salaries and benefits | $ |
|
$ |
|
|||||||
| Incentive compensation |
|
|
|||||||||
| Customer credits, advanced payments and advanced billings |
|
|
|||||||||
| Dividends |
|
|
|||||||||
| Professional service fees |
|
|
|||||||||
| Interest accrued on debt |
|
|
|||||||||
| Accounts payable |
|
|
|||||||||
| Income taxes |
|
|
|||||||||
| Pension and other retirement employee benefits |
|
|
|||||||||
| Accrued royalties |
|
|
|||||||||
| Foreign exchange forwards on certain assets and liabilities |
|
|
|||||||||
| Restructuring liability |
|
|
|||||||||
| Derivative instruments designated as accounting hedges |
|
|
|||||||||
| Other |
|
|
|||||||||
| Total accounts payable and accrued liabilities | $ |
|
$ |
|
|||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Other liabilities: | |||||||||||
| Pension and other retirement employee benefits | $ |
|
$ |
|
|||||||
| Interest accrued on UTPs |
|
|
|||||||||
| MAKS indemnification provisions |
|
|
|||||||||
| Income tax liability – non-current portion |
|
|
|||||||||
| Derivative instruments designated as accounting hedges |
|
|
|||||||||
| Restructuring liability |
|
|
|||||||||
| Other |
|
|
|||||||||
| Total other liabilities | $ |
|
$ |
|
|||||||
| Year Ended December 31, |
Location in the consolidated
statement of operations |
||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||
| Currency translation adjustment losses | |||||||||||||||||||||||
| Sale of foreign subsidiaries | $ |
|
$ |
(
|
$ |
|
Loss pursuant to the divestiture of MAKS | ||||||||||||||||
| Total currency translation adjustment losses |
|
(
|
|
||||||||||||||||||||
| Losses on cash flow hedges | |||||||||||||||||||||||
| Interest rate contract |
(
|
|
|
Other non-operating income (expense), net | |||||||||||||||||||
| Income tax effect of item above |
|
|
|
Provision for income taxes | |||||||||||||||||||
| Total net losses on cash flow hedges |
(
|
|
|
||||||||||||||||||||
| Gains on net investment hedges | |||||||||||||||||||||||
| Cross currency swaps |
|
|
|
Other non-operating income (expense), net | |||||||||||||||||||
| FX forwards |
|
|
|
Other non-operating income (expense), net | |||||||||||||||||||
| Total before income taxes |
|
|
|
||||||||||||||||||||
| Income tax effect of item above |
|
(
|
|
Provision for income taxes | |||||||||||||||||||
| Total net gains on net investment hedges |
|
|
|
||||||||||||||||||||
| Pension and other retirement benefits | |||||||||||||||||||||||
| Amortization of actuarial losses and prior service costs included in net income |
(
|
(
|
(
|
Other non-operating income (expense), net | |||||||||||||||||||
| Accelerated recognition of loss due to settlement |
(
|
|
|
Other non-operating income (expense), net | |||||||||||||||||||
| Total before income taxes |
(
|
(
|
(
|
||||||||||||||||||||
| Income tax effect of item above |
|
|
|
Provision for income taxes | |||||||||||||||||||
| Total pension and other retirement benefits |
(
|
(
|
(
|
||||||||||||||||||||
| Total losses included in Net Income attributable to reclassifications out of AOCI | $ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||
| Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
| Pension and Other Retirement Benefits | Gains / (Losses) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | |||||||||||||||||||||||||
| Balance December 31, 2019 | $ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||
| Other comprehensive income/(loss) before reclassifications |
(
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Amounts reclassified from AOCI |
|
|
|
(
|
|
||||||||||||||||||||||||
| Other comprehensive income/(loss) |
(
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Balance December 31, 2020 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||
| Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
| Pension and Other Retirement Benefits | Gains / (Losses) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | |||||||||||||||||||||||||
| Balance December 31, 2018 | $ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||
|
(
|
— | — |
(
|
(
|
|||||||||||||||||||||||||
| Other comprehensive income/(loss) before reclassifications |
(
|
|
(
|
|
(
|
||||||||||||||||||||||||
| Amounts reclassified from AOCI |
|
|
|
(
|
|
||||||||||||||||||||||||
| Other comprehensive income/(loss) |
(
|
|
|
|
(
|
||||||||||||||||||||||||
| Balance December 31, 2019 | $ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||
| Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||
| Pension and Other Retirement Benefits | Gains / (Losses) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Gains on Available for Sale Securities | Total | ||||||||||||||||||||||||||||||
| Balance December 31, 2017 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
| — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||
| Other comprehensive income/(loss) before reclassifications |
|
(
|
(
|
|
|
(
|
|||||||||||||||||||||||||||||
| Amounts reclassified from AOCI |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other comprehensive income/(loss) |
|
(
|
(
|
|
(
|
(
|
|||||||||||||||||||||||||||||
| Balance December 31, 2018 | $ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
| Pension Plans | Other Retirement Plans | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Change in benefit obligation: | |||||||||||||||||||||||
| Benefit obligation, beginning of the period | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| Service cost |
(
|
(
|
(
|
(
|
|||||||||||||||||||
| Interest cost |
(
|
(
|
(
|
(
|
|||||||||||||||||||
| Plan participants’ contributions |
|
|
(
|
(
|
|||||||||||||||||||
| Benefits paid |
|
|
|
|
|||||||||||||||||||
| Actuarial gain (loss) |
|
(
|
|
|
|||||||||||||||||||
| Assumption changes |
(
|
(
|
(
|
(
|
|||||||||||||||||||
| Benefit obligation, end of the period | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| Change in plan assets: | |||||||||||||||||||||||
| Fair value of plan assets, beginning of the period | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Actual return on plan assets |
|
|
|
|
|||||||||||||||||||
| Benefits paid |
(
|
(
|
(
|
(
|
|||||||||||||||||||
| Employer contributions |
|
|
|
|
|||||||||||||||||||
| Plan participants’ contributions |
|
|
|
|
|||||||||||||||||||
| Fair value of plan assets, end of the period | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Funded Status of the plans | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| Amounts recorded on the consolidated balance sheets: | |||||||||||||||||||||||
| Pension and retirement benefits asset – non current | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Pension and retirement benefits liability – current |
(
|
(
|
(
|
(
|
|||||||||||||||||||
| Pension and retirement benefits liability – non current |
(
|
(
|
(
|
(
|
|||||||||||||||||||
| Net amount recognized | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| Accumulated benefit obligation, end of the period | $ |
(
|
$ |
(
|
|||||||||||||||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Aggregate projected benefit obligation | $ |
|
$ |
|
|||||||
| Aggregate accumulated benefit obligation | $ |
|
$ |
|
|||||||
| Aggregate fair value of plan assets | $ |
|
$ |
|
|||||||
| Pension Plans | Other Retirement Plans | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Net actuarial losses | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| Net prior service credits |
|
|
|
|
|||||||||||||||||||
| Total recognized in AOCI – pretax | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||
| Pension Plans | Other Retirement Plans | ||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
| Components of net periodic expense | |||||||||||||||||||||||||||||||||||
| Service cost | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Interest cost |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Expected return on plan assets |
(
|
(
|
(
|
|
|
|
|||||||||||||||||||||||||||||
| Amortization of net actuarial loss and prior service credits from earlier periods |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net periodic expense | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Pension Plans | Other Retirement Plans | ||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
| Amortization of net actuarial losses and prior service credit | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Settlement loss |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net actuarial (loss)/gain arising during the period |
(
|
(
|
|
(
|
(
|
|
|||||||||||||||||||||||||||||
| Total recognized in OCI – pre-tax | $ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||||
| Pension Plans | Other Retirement Plans | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Discount rate |
|
% |
|
% |
|
% |
|
% | |||||||||||||||
| Rate of compensation increase |
|
% |
|
% |
|
|
|||||||||||||||||
| Pension Plans | Other Retirement Plans | ||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
| Discount rate |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
| Expected return on plan assets |
|
% |
|
% |
|
% |
|
|
|
||||||||||||||||||||||||||
| Rate of compensation increase |
|
% |
|
% |
|
% |
|
|
|
||||||||||||||||||||||||||
| Cash balance plan interest crediting rate |
|
% |
|
% |
|
% |
|
|
|
||||||||||||||||||||||||||
| Fair Value Measurement as of December 31, 2020 | |||||||||||||||||||||||||||||
| Asset Category | Balance | Level 1 | Level 2 |
Measured using NAV practical expedient
(1)
|
% of total
assets |
||||||||||||||||||||||||
| Cash and cash equivalent | $ |
|
$ | — | $ |
|
$ | — |
|
% | |||||||||||||||||||
| Common/collective trust funds—equity securities | |||||||||||||||||||||||||||||
| U.S. large-cap |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| U.S. small and mid-cap |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| Emerging markets |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| Total equity investments |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| Emerging markets bond fund |
|
— | — |
|
|
% | |||||||||||||||||||||||
| Common/collective trust funds—fixed income securities | |||||||||||||||||||||||||||||
| Intermediate-term investment grade U.S. government/ corporate bonds |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| Mutual funds | |||||||||||||||||||||||||||||
| U.S. Treasury Inflation-Protected Securities (TIPs) |
|
|
— | — |
|
% | |||||||||||||||||||||||
| Convertible securities |
|
|
— | — |
|
% | |||||||||||||||||||||||
| Private investment fund—high yield securities |
|
— | — |
|
|
% | |||||||||||||||||||||||
| Total fixed-income investments |
|
|
|
|
|
% | |||||||||||||||||||||||
| Other investment—private real estate fund |
|
— | — |
|
|
% | |||||||||||||||||||||||
| Total Assets | $ |
|
$ |
|
$ |
|
$ |
|
|
% | |||||||||||||||||||
| Fair Value Measurement as of December 31, 2019 | |||||||||||||||||||||||||||||
| Asset Category | Balance | Level 1 | Level 2 |
Measured using NAV practical expedient
(1)
|
% of total
assets |
||||||||||||||||||||||||
| Cash and cash equivalent | $ |
|
$ | — | $ |
|
$ | — |
|
% | |||||||||||||||||||
| Common/collective trust funds—equity securities | |||||||||||||||||||||||||||||
| U.S. large-cap |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| U.S. small and mid-cap |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| Emerging markets |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| Total equity investments |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| Emerging markets bond fund |
|
— | — |
|
|
% | |||||||||||||||||||||||
| Common/collective trust funds—fixed income securities | |||||||||||||||||||||||||||||
| Intermediate-term investment grade U.S. government/ corporate bonds |
|
— |
|
— |
|
% | |||||||||||||||||||||||
| U.S. Treasury Inflation-Protected Securities (TIPs) |
|
|
— | — |
|
% | |||||||||||||||||||||||
| Private investment fund—convertible securities |
|
|
— | — |
|
% | |||||||||||||||||||||||
| Private investment fund—high yield securities |
|
— | — |
|
|
% | |||||||||||||||||||||||
| Total fixed-income investments |
|
|
|
|
|
% | |||||||||||||||||||||||
| Other investment—private real estate debt fund |
|
— | — |
|
|
% | |||||||||||||||||||||||
| Total Assets | $ |
|
$ |
|
$ |
|
$ |
|
|
% | |||||||||||||||||||
| Year Ending December 31, | Pension Plans | Other Retirement Plans | ||||||||||||
| 2021 | $ |
|
$ |
|
||||||||||
| 2022 |
|
|
||||||||||||
| 2023 |
|
|
||||||||||||
| 2024 |
|
|
||||||||||||
| 2025 |
|
|
||||||||||||
| 2026 - 2030 | $ |
|
$ |
|
||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Stock-based compensation expense | $ |
|
$ |
|
$ |
|
|||||||||||
| Tax benefit | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Expected dividend yield |
|
|
|
||||||||||||||
| Expected stock volatility |
|
% |
|
% |
|
% | |||||||||||
| Risk-free interest rate |
|
|
|
||||||||||||||
| Expected holding period -in years |
|
|
|
||||||||||||||
| Grant date fair value | $ |
|
$ |
|
$ |
|
|||||||||||
| Options | Shares | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||||
| Outstanding, December 31, 2019 |
|
$ |
|
|||||||||||||||||||||||
| Granted |
|
|
||||||||||||||||||||||||
| Exercised |
(
|
|
||||||||||||||||||||||||
| Outstanding, December 31, 2020 |
|
|
|
$ |
|
|||||||||||||||||||||
| Vested and expected to vest, December 31, 2020 |
|
|
|
$ |
|
|||||||||||||||||||||
| Exercisable, December 31, 2020 |
|
$ |
|
|
$ |
|
||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Proceeds from stock option exercises |
|
|
|
||||||||||||||
| Aggregate intrinsic value |
|
|
|
||||||||||||||
| Tax benefit realized upon exercise |
|
|
|
||||||||||||||
| Nonvested Restricted Stock | Shares | Weighted Average Grant Date Fair Value Per Share | ||||||||||||
| Balance, December 31, 2019 |
|
$ |
|
|||||||||||
| Granted |
|
|
||||||||||||
| Vested |
(
|
|
||||||||||||
| Balance, December 31, 2020 |
|
$ |
|
|||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Fair value of shares vested |
|
|
|
||||||||||||||
| Tax benefit realized upon vesting |
|
|
|
||||||||||||||
| Performance-based restricted stock | Shares | Weighted Average Grant Date Fair Value Per Share | ||||||||||||
| Balance, December 31, 2019 |
|
$ |
|
|||||||||||
| Granted |
|
|
||||||||||||
| Vested |
(
|
|
||||||||||||
| Balance, December 31, 2020 |
|
$ |
|
|||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Fair value of shares vested |
|
|
|
||||||||||||||
| Tax benefit realized upon vesting |
|
|
|
||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ |
|
$ |
|
$ |
|
|||||||||||
| State and Local |
|
|
|
||||||||||||||
| Non-U.S. |
|
|
|
||||||||||||||
| Total current |
|
|
|
||||||||||||||
| Deferred: | |||||||||||||||||
| Federal |
|
(
|
(
|
||||||||||||||
| State and Local |
|
(
|
(
|
||||||||||||||
| Non-U.S. |
(
|
(
|
(
|
||||||||||||||
| Total deferred |
(
|
(
|
(
|
||||||||||||||
| Total provision for income taxes | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| U.S. statutory tax rate |
|
% |
|
% |
|
% | |||||||||||
| State and local taxes, net of federal tax benefit |
|
% |
|
% |
|
% | |||||||||||
| Benefit of foreign operations |
(
|
% |
(
|
% |
|
% | |||||||||||
| U.S. Tax Act impact |
|
% |
|
% |
(
|
% | |||||||||||
| Other |
(
|
% |
(
|
% |
(
|
% | |||||||||||
| Effective tax rate |
|
% |
|
% |
|
% | |||||||||||
| Income tax paid | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| U.S. | $ |
|
$ |
|
$ |
|
|||||||||||
| Non-U.S. |
|
|
|
||||||||||||||
| Income before provision for income taxes | $ |
|
$ |
|
$ |
|
|||||||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Deferred tax assets: | |||||||||||
| Account receivable allowances | $ |
|
$ |
|
|||||||
| Accumulated depreciation and amortization |
|
|
|||||||||
| Stock-based compensation |
|
|
|||||||||
| Accrued compensation and benefits |
|
|
|||||||||
| Capitalized costs |
|
|
|||||||||
| Operating lease liabilities |
|
|
|||||||||
| Deferred revenue |
|
|
|||||||||
| Net operating loss |
|
|
|||||||||
| Restructuring |
|
|
|||||||||
| Uncertain tax positions |
|
|
|||||||||
| Self-insured related reserves |
|
|
|||||||||
| Loss on net investment hedges - OCI |
|
|
|||||||||
| Other |
|
|
|||||||||
| Total deferred tax assets |
|
|
|||||||||
| Deferred tax liabilities: | |||||||||||
| Accumulated depreciation and amortization of intangible assets and capitalized software |
(
|
(
|
|||||||||
| ROU Assets |
(
|
(
|
|||||||||
| Capital Gains |
(
|
(
|
|||||||||
| Self-insured related income |
(
|
(
|
|||||||||
| Stock-based compensation |
|
(
|
|||||||||
| Revenue Accounting Standard - ASC 606 |
(
|
(
|
|||||||||
| Deferred tax on unremitted foreign earnings |
(
|
|
|||||||||
| Gain on net investment hedges - OCI |
(
|
(
|
|||||||||
| Other |
(
|
(
|
|||||||||
| Total deferred tax liabilities |
(
|
(
|
|||||||||
| Net deferred tax liabilities |
(
|
(
|
|||||||||
| Valuation allowance |
(
|
(
|
|||||||||
| Total net deferred tax liabilities | $ |
(
|
$ |
(
|
|||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Balance as of January 1 | $ |
|
$ |
|
$ |
|
|||||||||||
| Additions for tax positions related to the current year |
|
|
|
||||||||||||||
| Additions for tax positions of prior years |
|
|
|
||||||||||||||
| Reductions for tax positions of prior years |
(
|
(
|
(
|
||||||||||||||
| Settlements with taxing authorities |
(
|
(
|
(
|
||||||||||||||
| Lapse of statute of limitations |
(
|
(
|
(
|
||||||||||||||
| Reclassification to indemnification liability related to MAKS divestiture |
|
(
|
|
||||||||||||||
| Balance as of December 31 | $ |
|
$ |
|
$ |
|
|||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||
| Principal Amount |
Fair Value of Interest Rate Swaps
(1)
|
Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | |||||||||||||||||||||||||
| Notes Payable: | |||||||||||||||||||||||||||||
|
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
(
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
| Total long-term debt | $ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||
| December 31, 2019 | |||||||||||||||||||||||||||||
| Principal Amount |
Fair Value of Interest Rate Swaps
(1)
|
Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | |||||||||||||||||||||||||
| Notes Payable: | |||||||||||||||||||||||||||||
|
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||
| Total long-term debt | $ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
| Issue Date | Capacity | Maturity | Drawn | Undrawn | Drawn | Undrawn | |||||||||||||||||||||||||||||||||||
| 2018 Credit Facility | November 14, 2018 | $ |
|
November 13, 2023 | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||
|
Year Ending
December 31, |
2012 Senior Notes due 2022 | 2013 Senior Notes due 2024 | 2014 Senior Notes due 2044 | 2015 Senior Notes due 2027 | 2017 Senior Notes due 2023 | 2017 Senior Notes due 2028 | 2018 Senior Notes due 2029 | 2018 Senior Notes due 2048 | 2019 Senior Notes due 2030 | 2020 Senior Notes due 2025 | 2020 Senior Notes due 2050 | 2020 Senior Notes due 2060 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 |
|
— | — | — | — | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | — | — | — | — |
|
— | — | — | — | — | — | — |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | — |
|
— | — | — | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | — | — | — | — | — | — | — | — | — |
|
— | — |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Thereafter | — | — |
|
|
— |
|
|
|
|
— |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Income | $ |
|
$ |
|
$ |
|
|||||||||||
| Expense on borrowings |
(
|
(
|
(
|
||||||||||||||
| Expense on UTPs and other tax related liabilities |
(
|
(
|
(
|
||||||||||||||
| Net periodic pension costs—interest component |
(
|
(
|
(
|
||||||||||||||
| Capitalized |
|
|
|
||||||||||||||
| Total | $ |
(
|
$ |
(
|
$ |
(
|
|||||||||||
|
Interest paid
(1)
|
$ |
|
$ |
|
$ |
|
|||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
| Carrying Amount |
Estimated Fair
Value |
Carrying Amount |
Estimated Fair
Value |
||||||||||||||||||||
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
— | — |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
— | — |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
— | — | |||||||||||||||||||
|
|
|
|
— | — | |||||||||||||||||||
|
|
|
|
— | — | |||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Date Authorized | Amount Authorized | Remaining Authority | ||||||||||||
| December 16, 2019 | $ |
|
|
|||||||||||
| Dividends Per Share | |||||||||||||||||||||||||||||||||||
| Year ended December 31, | |||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
| Declared | Paid | Declared | Paid | Declared | Paid | ||||||||||||||||||||||||||||||
| First quarter | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Second quarter |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Third quarter |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Fourth quarter |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Year Ended December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Operating lease cost | $ |
|
$ |
|
|||||||
| Sublease income |
(
|
(
|
|||||||||
| Variable lease cost |
|
|
|||||||||
| Total lease cost | $ |
|
$ |
|
|||||||
| Year Ended December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ |
|
$ |
|
|||||||
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$ |
|
$ |
|
|||||||
| Year Ended December 31, | ||||||||
| 2020 | 2019 | |||||||
|
Weighted-average remaining lease term (in years)
|
|
|
||||||
|
Weighted-average discount rate applied to operating leases
|
|
% |
|
% | ||||
| Year Ending December 31, | Operating Leases | |||||||
| 2021 | $ |
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| Thereafter |
|
|||||||
| Total lease payments (undiscounted) |
|
|||||||
| Less: Interest |
|
|||||||
| Present value of lease liabilities: |
|
|||||||
| Lease liabilities - current |
|
|||||||
| Lease liabilities - noncurrent | $ |
|
||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
| MIS | MA | Eliminations | Consolidated | MIS | MA | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||
| Revenue | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||
| Total Expense |
|
|
(
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||||
| Operating income |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Acquisition-Related Expenses |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Loss pursuant to the divestiture of MAKS |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Captive insurance company settlement |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Income | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Year Ended December 31, 2018 | |||||||||||||||||||||||
| MIS | MA | Eliminations | Consolidated | ||||||||||||||||||||
| Revenue | $ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||
| Total Expense |
|
|
(
|
|
|||||||||||||||||||
| Operating Income |
|
|
|
|
|||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Restructuring |
|
|
|
|
|||||||||||||||||||
| Depreciation and amortization |
|
|
|
|
|||||||||||||||||||
| Acquisition-Related Expenses |
|
|
|
|
|||||||||||||||||||
| Adjusted Operating income | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Revenue: | |||||||||||||||||
| U.S. | $ |
|
$ |
|
$ |
|
|||||||||||
| Non-U.S.: | |||||||||||||||||
| EMEA |
|
|
|
||||||||||||||
| Asia-Pacific |
|
|
|
||||||||||||||
| Americas |
|
|
|
||||||||||||||
|
Total Non-U.S.
|
|
|
|
||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||
| Long-lived assets at December 31: | |||||||||||||||||
| U.S. | $ |
|
$ |
|
$ |
|
|||||||||||
| Non-U.S. |
|
|
|
||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||
| Year Ended December 31, | Balance at Beginning of the Year | Charged to costs and expenses |
Deductions
(1)
|
Balance at End of the Year | ||||||||||||||||||||||||||||
| 2020 | ||||||||||||||||||||||||||||||||
| Allowances for credit losses | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
||||||||||||||||||||||
| Deferred tax assets—valuation allowance | $ |
(
|
$ | — | $ |
(
|
$ |
|
$ |
(
|
||||||||||||||||||||||
| 2019 | ||||||||||||||||||||||||||||||||
| Allowances for credit losses | $ |
(
|
$ | — | $ |
(
|
$ |
|
$ |
(
|
||||||||||||||||||||||
| Deferred tax assets—valuation allowance | $ |
(
|
$ | — | $ |
(
|
$ |
|
$ |
(
|
||||||||||||||||||||||
| 2018 | ||||||||||||||||||||||||||||||||
| Allowances for credit losses | $ |
(
|
$ | — | $ |
(
|
$ |
|
$ |
(
|
||||||||||||||||||||||
| Deferred tax assets—valuation allowance | $ |
(
|
$ | — | $ |
|
$ |
|
$ |
(
|
||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| FX gain (loss) | $ |
|
$ |
(
|
$ |
(
|
|||||||||||
| Net periodic pension costs—other components |
|
|
|
||||||||||||||
| Income from investments in non-consolidated affiliates |
|
|
|
||||||||||||||
| Other |
|
|
|
||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||||||||
| S-K EXHIBIT NUMBER |
|
||||||||||
| 3 |
|
Articles Of Incorporation And By-laws | |||||||||
|
|
|
.1 | |||||||||
|
|
|
.2 | |||||||||
| 4 |
|
Instruments Defining The Rights Of Security Holders, Including Indentures | |||||||||
|
|
|
.1* |
|
||||||||
|
|
|
.2 |
|
||||||||
|
|
|
.3.1 |
|
||||||||
|
|
|
.3.2 |
|
||||||||
|
|
|
.3.3 |
|
||||||||
|
|
|
.3.4 |
|
||||||||
|
|
|
.3.5.1 |
|
||||||||
|
|
|
.8.2† |
|
||||||||
|
|
|
.8.3† |
|
||||||||
|
|
|
.9† |
|
||||||||
|
|
|
.10†* |
|
||||||||
|
|
|
.11†* |
|
||||||||
|
|
|
.12† |
|
||||||||
|
|
|
.13.1† |
|
||||||||
|
|
|
.13.2† |
|
||||||||
|
|
|
.14† |
|
||||||||
|
|
|
.15 |
|
||||||||
|
|
|
.16† |
|
||||||||
|
|
|
.17 |
|
||||||||
|
|
|
.18 |
|
||||||||
|
|
|
.19 |
|
||||||||
|
|
|
.20 |
|
||||||||
| 21* |
|
|
|
||||||||
| 23 |
|
Consent of Independent Registered Public Accounting Firm | |||||||||
|
|
|
.1* |
|
||||||||
| 31 |
|
Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||||
|
|
|
.1* |
|
||||||||
|
|
|
.2* |
|
||||||||
| 32 |
|
Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||||
|
|
|
.1* |
|
||||||||
|
|
|
.2* | |||||||||
| 101 |
|
Inline XBRL |
|
||||||||
|
|
|
.INS* | Inline XBRL Instance Document | ||||||||
|
|
|
.SCH* | Inline XBRL Taxonomy Extension Schema Document | ||||||||
|
|
|
.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||
|
|
|
.DEF* | Inline XBRL Definitions Linkbase Document | ||||||||
|
|
|
.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | ||||||||
|
|
|
.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||
| 104 |
|
|
The cover page from this Annual Report on Form 10-K (formatted in Inline XBRL and contained in Exhibit 101) | ||||||||
| MOODY’S CORPORATION | ||
| (Registrant) | ||
| By: /s/ ROBERT FAUBER | ||
|
Robert Fauber
|
||
| President and Chief Executive Officer | ||
| /s/ ROBERT FAUBER | /s/ VINCENT A. FORLENZA | ||||
|
Robert Fauber,
|
Vincent A. Forlenza, | ||||
| President and Chief Executive Officer | Lead Independent Director | ||||
| (principal executive officer) | |||||
| /s/ MARK KAYE | /s/ KATHRYN M. HILL | ||||
| Mark Kaye, | Kathryn M. Hill, | ||||
| Senior Vice President and Chief Financial Officer | Director | ||||
| (principal financial officer) | |||||
| /s/ CAROLINE SULLIVAN | /s/ RAYMOND W. MCDANIEL, JR. | ||||
| Caroline Sullivan, | Raymond W. McDaniel, Jr., | ||||
| Senior Vice President and Corporate Controller | Chairman | ||||
| (principal accounting officer) | |||||
| /s/ BASIL L. ANDERSON | /s/ HENRY A. MCKINNELL, JR. PH.D. | ||||
| Basil L. Anderson, | Henry A. McKinnell, Jr. Ph.D., | ||||
| Director | Director | ||||
| /s/ JORGE A. BERMUDEZ | /s/ LESLIE F. SEIDMAN | ||||
| Jorge A. Bermudez, | Leslie F. Seidman, | ||||
| Director | Director | ||||
| /s/ THÉRÈSE ESPERDY | /s/ BRUCE VAN SAUN | ||||
| Thérèse Esperdy, | Bruce Van Saun, | ||||
| Director | Director | ||||
| Date: February 19, 2021 | |||||